i

Dissertation Report
On
“Financial Statement Analysis :A case study
on Vodafone Idea Ltd and Bharti Airtel Ltd ”
As a partial fulfillment of the requirement of the Award of Degree

For

Bachelor of Business Administration

Submitted by:

Name – Akankhya Pattanayak

Roll no – S3121BBA005

BBA 5th SEMESTER (2021-2024)

Rourkela Institute of Management Studies(Affiliated to Sambalpur University)

1
 i

Certificate of Supervisor

This is to certify that the dissertation report entitled “Financial Statement Analysis: A Case study
on Vodafone Idea Limited and Bharti Airtel Limited ” submitted by Akankhya Pattanayak
bearing Roll No. S3121BBA005 as a partial fulfilment of the requirement for the award of a degree
for Bachelor of Business Administration (B.B.A.) in the faculty of Rourkela Institute of
Management Studies (RIMS), Rourkela is a record of authentic work carried out by her under my
supervision and guidance.

To the best of my knowledge, the matter embodied in this dissertation is the original work of the
candidate and has not been submitted for the award of any other degree of any university or
institution. The work is free of any type of plagiarism.

Signature

Prof. Trilochan Jena

Faculty, RIMS

2
 i

Certificate Of Principal

This is to certify that the project entitled “Financial Statement Analysis: A Case study on
Vodafone Idea Limited and Bharti Airtel Limited” is a Bonafede record of the interim report
carried out by Miss Akankhya Pattanayak, a student of Rourkela Institute of Management Studies,
Rourkela bearing University Roll No. S3121BBA005 (2021-2024 batch) has completed her
dissertation project to partially fulfil the requirements of the award for the degree of Bachelor in
Business Administration of Sambalpur University, Odisha. The dissertation project report has not
been submitted earlier to any other University.

I wish her good luck for a successful career and all future endeavors.

Date:

Principal

RIMS, Rourkela.

3
 i

Certificate of External Examiner

It is to certify that the dissertation entitled “Financial Statement Analysis: A Case study on
Vodafone Idea Limited and Bharti Airtel Limited ” has been satisfactorily completed and
submitted by Miss Akankhya Pattanayak, University Roll No. – S31121BBA005 in partial
fulfilment of the requirement for the award of the degree of Bachelor in Business Administration
at Rourkela Institute of Management Studies (RIMS).

S3121BBA005

Akankhya Pattanayak External Examiner

4
 i

Declaration

I hereby declare that the work presented in the summer internship report entitled “Financial
Statement Analysis: A Case study on Vodafone Idea Limited and Bharti Airtel” done at Rourkela
Institute of Management Studies (RIMS), is original research carried out by me and has not been
submitted to any other university or institution for evaluation. This is done under the guidance and
supervision of the internal guide Prof. Trilochan Jena in partial fulfilment of the requirement for
the Bachelor in Business Administration (B.B.A.) degree at Rourkela Institute of Management
Studies, Rourkela.

Date:

Place: Rourkela Signature of the student

Name – Akankhya Pattanayak

University Roll no- S3121BBA005

5
 i

Acknowledgement

The process of writing and completing this dissertation has been challenging yet very rewarding
for me. I would like to express my sincere gratitude to several important people. Firstly, I would
like to thank Prof. Trilochan Jena my guide and my mentor for his support, guidance, and
confidence in me. I appreciate the guidance and support from the faculty members of RIMS,
Rourkela. I am grateful to my fellow students for their friendship and support throughout the years
of study.

I would like to convey my deepest gratitude to my family members for their love and support
every step of the way. They have always encouraged me to pursue what I wanted to do with my
life.

6
 i

TABLE OF CONTENTS

CONTENTS PAGE NO

CHAPTER I : INTRODUCTION 9-18

1.1 BACKGROUND AND RATIONALE 10-11

1.2 INTRODUCTION OF THE INDUSTRY 12-14

1.3 INTRODUCTION OF THE COMPANIES 14-18

1.4 JUSTIFICATION OF THE TOPIC 18

CHAPTER REVIEW II: LITERARTURE REVIEW 20-26

2.1 NATIONAL REVIEW 20-23

2.2 INTERNATION REVIEW 223-25

2.3 LITERATURE SURVEY 26

CHAPTER III: RESEARCH METHODOLGY 28-33

3.1 RESEARCH OBJECTIVE 28

3.2 SCOPE OF STUDY 28

3.3 DATA COLLECTION 29

3.4 SAMPLING 29

3.5 SECONDARY RESEARCH 29

3.6 PERIOD OF STUDY 30

3.7 TOOLS USED FOR FINANCIAL ANALYSIS 30-32

3.8 LIMITATION OF THE STUDY 33

CHAPTER IV : DATA ANALYSIS AND I 35-80

NTERPRETATION

7
 i

4.1 RATIO ANALYSIS 35

4.1.A LIQUIDITY RATIOS 35-39

4.1.B SOLVENCY RATIOS 39

4.1.C PROFITABILITY RATIOS 43

4.1.D RETURN ON INVESTMENT 43-48

4.2 COMPARATIVE STATEMENT ANALYSIS 48-54

4.2.A INCOME STATEMENT ANALYSIS 54-57

4.2.B BALANCE SHEETS ANALYSIS 58-66

4.2.C CASH FLOW STATEMENT ANALYSIS 67-75

CHAPTER V: RESULTS AND DISCUSSIONS 76-80

5.1 MAJOR FINDINGS 82-83

5.2 DISCUSSIONS AND SUGGESTIONS 84

5.3 CONCLUSION 85

CHAPTER VI : REFERENCES 87-90

8
 i

CHAPTER I:

9
 i

INTRODUCTION

This study delves into the intricate realm of Financial Statement Analysis, scrutinizing a company's
economic vitality through its balance sheet, income statement, and cash flow statement. By
employing rigorous techniques like ratio analysis and trend assessment, the research aims to unveil
key insights into a firm's profitability, liquidity, and overall financial stability. As a pivotal tool
for investors, creditors, and management, Financial Statement Analysis facilitates informed
decision-making, offering a comprehensive perspective on a company's financial health and
performance. This exploration not only explores the methodologies but also acknowledges the
inherent challenges, providing a nuanced understanding of the complexities surrounding financial
assessments.

10
 i

In the dynamic landscape of contemporary business, the ability to decipher financial information
is paramount for stakeholders seeking to make informed decisions. Financial Statement Analysis
(FSA) stands as a critical tool in this pursuit, providing a structured framework for evaluating the
financial health and performance of an organization. This dissertation delves into the intricacies of
FSA, aiming to unravel the layers of financial data to gain valuable insights into the corporate
fabric.

1.1 Background and Rationale:

Financial Statement Analysis (FSA) is a fundamental tool employed by investors, analysts,

creditors, and management to evaluate the financial health and performance of a company.
Financial statements, including the balance sheet, income statement, and cash flow statement, offer
a snapshot of a company's economic activities over a specific period. FSA involves interpreting
these statements to derive meaningful insights into the company's profitability, liquidity, solvency,
and overall financial stability.

Financial statement analysis has evolved over decades as a response to the increasing complexity
of business operations and the need for robust decision-making mechanisms. The analysis allows
stakeholders to gauge the efficiency of a company's operations, make informed investment
decisions, assess risk, and formulate strategic plans. It serves as a cornerstone for financial
management, offering a systematic approach to understanding the financial position of an entity.

The rationale for conducting financial statement analysis is multifaceted and crucial for various
stakeholders:

Investors rely on financial statement analysis to make informed investment decisions. By

evaluating a company's financial performance, investors can assess the potential for returns and
gauge the level of risk associated with an investment.

11
 i

Creditors, such as banks and financial institutions, use financial statement analysis to
evaluate a borrower's creditworthiness. This assessment helps in determining the terms of lending,
interest rates, and the overall risk associated with extending credit.

Company management utilizes financial statement analysis to identify areas of strength and
weakness in their operations. It aids in strategic planning, allowing for the allocation of resources,
setting financial goals, and adapting to market dynamics.

Regulatory bodies often require companies to submit audited financial statements. Financial
statement analysis helps ensure compliance with accounting standards, providing transparency and
accountability.

Executives and boards of directors use FSA as a tool for evaluating the effectiveness of managerial
decisions and overall corporate performance. It serves as a basis for performance appraisals and
the formulation of future strategies.

Publicly traded companies are under constant scrutiny from analysts and the financial markets.
The results of financial statement analysis influence market perceptions, affecting a company's
stock price and overall market capitalization.

Financial statement analysis is integral to risk management. By assessing a company's financial

ratios, stakeholders can identify potential financial distress, liquidity issues, or operational
inefficiencies, enabling proactive risk mitigation.

Financial statement analysis is indispensable for making informed financial decisions, managing
risk, and ensuring the transparency and accountability of businesses. It provides a comprehensive
view of a company's financial health and serves as a linchpin in the decision-making processes of
various stakeholders in the business ecosystem.

12
 i

1.2 Introduction of Industry :

The telecommunications industry plays a pivotal role in connecting individuals,

businesses, and societies across the globe. Over the past few decades, it has witnessed
unprecedented growth and transformation, driven by rapid technological advancements and
evolving consumer demands. This dynamic sector encompasses a wide range of services, including
voice communication, data transmission, internet connectivity, and multimedia services. The
dissertation aims to delve into the intricate landscape of the telecommunications industry,
exploring its historical evolution, current state, and future prospects.

Historical Evolution: The roots of the telecommunications industry can be traced back to the
invention of the telegraph in the 19th century, marking the beginning of long-distance
communication. Subsequent innovations, such as the telephone and radio, further revolutionized
the industry, laying the groundwork for the interconnected world we live in today. The latter half
of the 20th century witnessed the advent of digital technologies, leading to the proliferation of
mobile communication and the internet, fundamentally reshaping the industry's landscape.

Current State of the Telecom Industry: As of 2023, the telecommunications industry is

characterized by intense competition, technological convergence, and a rapidly changing
regulatory environment. Major players, including telecommunications service providers,
equipment manufacturers, and technology companies, are engaged in a constant race to deploy
cutting-edge infrastructure and services. The shift towards 5G technology, the Internet of Things
(IoT), and virtualization are key trends shaping the current state of the industry. Additionally, the
industry is grappling with issues related to privacy, cybersecurity, and regulatory compliance.

Challenges and Opportunities: The telecommunications industry faces a myriad of challenges,

ranging from the need for substantial investments in network infrastructure to regulatory
uncertainties and evolving consumer expectations. Furthermore, the industry must navigate the
complexities of spectrum allocation, network interoperability, and the ethical implications of
emerging technologies. However, these challenges also bring forth opportunities for innovation,
collaboration, and market expansion. The race to provide ubiquitous, high-speed connectivity, and

13
 i

the potential of emerging technologies like artificial intelligence and edge computing,
present exciting avenues for growth.

Government Initiatives

The government has accelerated telecom reforms and continues to be constructive in providing
space for telecom companies to expand. The following are some of the government's major
initiatives

• In December 2020, the Union Cabinet approved a proposal by the Department of

Telecommunications to set up Public Wi-Fi Networks through Public Data Office
Aggregators (PDOAs) to provide public Wi-Fi services through Public Data Offices, which
was chaired by Prime Minister Narendra Modi (PDOs).
• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the provision of
submarine optical fiber cable connectivity between the mainland (Kochi) and the
Lakshadweep Islands in December 2020. (KLI Project).
• On November 4, 2020, the Union Cabinet, chaired by Prime Minister Mr. Narendra Modi,
approved the signing of a Memorandum of Understanding (MoU) on cooperation in the
field of telecommunications/information and communication technologies between the
Ministry of Communication and Information Technology and the Department of Digital,
Culture, Media and Sports (DCMS) of the United Kingdom Government. (ICTs).
• On September 21, 2020, Prime Minister Narendra Modi announced the launch of a project
to provide optical fiber internet access to all 45,945 villages in Bihar. The project will be
completed by March 31, 2021, at a cost of Rs. 1,000 crores (US$ 135.97 million); the
Department of Telecommunications will finance Rs. 640 crores (US$ 87.01 million) of
capital expenditure.
• The Production Incentive Scheme (PLI) for Large-Scale Electronics Manufacturing was
approved by the government in March 2020. The plan proposes a production-linked
incentive to improve domestic manufacturing and attract major investments in cell phone
manufacturing and specific electronic products, such as ATMP units (Assembly, Testing,
Marking, and Packaging). • The Indian government approved 100% foreign direct
investment in Bharti Airtel in January 2020.

14
 i

• In light of the sector's rapid technological growth in recent years, the Indian
government expected to release a new National Telecom Policy in 2018. By
2022, the strategy aimed to raise $100 billion in investments in the industry.
• As part of the National e-Governance Plan, the Department of Information Technology
plans to develop over 1 million internet-enabled common service centers across India.

By 2020, revenue from telecom equipment is projected to reach US$ 26.38 billion. By 2021,
the number of internet subscribers in the country is projected to double to 829 million, with
total IP traffic growing fourfold at a CAGR of 30%. The Indian government intends to build
100 smart city projects, with IoT playing a key role in their growth. The National Digital
Communications Policy of 2018 aimed to attract $100 billion in telecommunications
investment by 2022, according to the policy. In India, app downloads are projected to grow to
18.11 billion in 2018 Financial Year and 37.21 billion in 2022 Financial Year

1.3 Introduction to Company :

Vodafone Idea Limited

Vodafone Idea Limited is a major telecommunications company in India, resulting from the
merger of Vodafone India and Idea Cellular in August 2018 by Ravinder Thakkar (Chairman),
Akshay Moondra (CEO), Kumar Mangalam Birla (Non-Executive Director). Vodafone Idea
Limited played a significant role in providing a wide range of telecommunication services across
the country. However, please verify this information as circumstances in the telecommunications
industry can change rapidly.

15
 i

Historical Origin and Merger:

Vodafone India: Vodafone India was a subsidiary of the global telecommunications

giant Vodafone Group. Vodafone entered the Indian market in 2007 by acquiring a majority stake
in Hutchison Essar. Over the years, it expanded its presence in the country, offering mobile
telephony, data services, and other telecommunications solutions.

Idea Cellular: Idea Cellular, on the other hand, was an Indian mobile network operator. It
commenced operations in 1995 and steadily grew to become one of the leading telecom companies
in India. Idea Cellular provided a range of services, including voice, data, and value-added
services.

Merger in 2018: The merger of Vodafone India and Idea Cellular was officially completed in
August 2018. This merger was aimed at creating a stronger, more resilient entity in response to the
highly competitive and rapidly evolving telecommunications landscape in India.

Formation of Vodafone Idea Limited: The merger resulted in the formation of Vodafone Idea
Limited, a joint venture between Vodafone Group and Aditya Birla Group (which owned Idea
Cellular). Vodafone held a significant stake in the combined entity.

Telecom Services: Vodafone Idea Limited continued to operate as a major player in the Indian
telecommunications sector. The company provided a comprehensive suite of services, including
mobile voice and data services, broadband, and enterprise solutions. The company catered to both
individual consumers and businesses.

Network Presence: The merged entity inherited a wide network presence across the country, with
the goal of offering seamless connectivity to a vast subscriber base. The company aimed to
leverage the strengths of both Vodafone and Idea to enhance its service quality and coverage.
Vodafone Idea provided a wide range of telecommunications services, including mobile voice and
data services, broadband, and enterprise solutions. The company operated on a pan-India basis,
offering services to millions of subscribers.

16
 i

Challenges: Despite its extensive network and subscriber base, Vodafone Idea faced
financial challenges. The Indian telecom industry experienced intense competition,
regulatory changes, and pricing pressures, contributing to the financial difficulties of major
players. The company encountered financial challenges, including a substantial debt burden and
losses. Vodafone Idea sought various measures to address these challenges, including fundraising
and tariff adjustments.

Strategic Initiatives: Vodafone Idea implemented various strategic initiatives to address its
financial challenges. These initiatives included efforts to improve operational efficiency, raise
funds, and adjust tariff structures. These included efforts to improve operational efficiency,
network quality, and customer service.

Bharti Airtel Limited

Bharti Airtel Limited, commonly known as Bharti Airtel, stands as one of the leading global
telecommunications companies, playing a pivotal role in shaping the landscape of communication
services. Founded in 1995 by Sunil Bharti Mittal, Bharti Airtel has evolved into a
telecommunications giant, operating in multiple countries and offering a diverse range of services
that go beyond traditional voice communication. This introduction provides an overview of Bharti
Airtel's journey, its current standing, and its contributions to the ever-evolving telecommunications
industry.

17
 i

Historical Origins: Bharti Airtel commenced its journey in the Indian telecommunications market,
marking its entry at a time when the sector was undergoing significant liberalization. Initially
offering basic voice services, Bharti Airtel rapidly adapted to technological advancements and
shifting consumer needs, propelling it to the forefront of the industry.

Diversification and Global Expansion: Over the years, Bharti Airtel has expanded its portfolio to
encompass a wide array of services, including mobile and fixed-line telephony, broadband, digital
television, and enterprise solutions. The company's ambitious global expansion strategy has led to
its presence in multiple countries across Africa and South Asia, making Bharti Airtel a truly
international player in the telecommunications arena.

Innovation and Technological Leadership: Bharti Airtel has consistently embraced innovation and
technological leadership, evident in its proactive adoption of advancements such as 4G and 5G
technologies. The company's commitment to providing high-speed internet, seamless connectivity,
and cutting-edge solutions has contributed significantly to its competitive edge in the market.

Market Position and Scale: As of 2023, Bharti Airtel stands as one of the largest
telecommunications operators globally, with a substantial subscriber base and a robust network
infrastructure. The company's market presence extends beyond traditional telecom services,
incorporating a diverse range of digital offerings that cater to the evolving needs of consumers and
businesses.

Corporate Social Responsibility (CSR) Initiatives: Bharti Airtel has actively engaged in corporate
social responsibility initiatives, addressing social and environmental concerns. The company has
undertaken projects in education, healthcare, and environmental sustainability, reflecting a
commitment to making a positive impact in the communities it serves.

Challenges and Future Outlook: While Bharti Airtel has achieved remarkable success, it also faces
challenges common to the telecommunications industry, including regulatory complexities,
technological disruptions, and the need for continuous innovation. The company's future outlook

18
 i

involves navigating these challenges while capitalizing on opportunities presented by

emerging technologies, digital transformation, and evolving consumer expectations.

In conclusion, Bharti Airtel's journey from its inception to its current standing as a global
telecommunications leader is a testament to its adaptability, innovation, and commitment to
providing cutting-edge communication solutions. As the company continues to navigate the
dynamic landscape of the telecommunications industry, its role in shaping the future of
connectivity remains pivotal. This dissertation will delve deeper into Bharti Airtel's evolution,
market strategies, and its impact on the telecommunications sector.

1.4 Justification of the Topic

Conducting a financial statement analysis on Vodafone Idea Limited and Bharti Airtel holds
significant relevance due to the industry's importance, market competition, investor interest,
strategic decision-making, policy implications, technological trends, consumer impact, and
academic contributions. This case study can provide valuable insights into the financial dynamics
of two major players in the telecommunications sector, offering a holistic perspective on their
performance and positioning within the industry.

19
 i

CHAPTER II

20
 i

2.1 Literature review

2.1 National Review

2.1.1 (PTI, 2020) The impact of Covid-19 results in; loss of 82 Lakh subscribers in April. Airtel
and Vodafone Idea witnessed the biggest loss during lockdown whereas Reliance Jio witnessed a
growth in its base. The industry-wide subscriber base declined month-on-month by 2.8 million and
8.2 million in March and April 2020.The decline was attributable to a reduction in the subscriber
base of Vodafone Idea Limited (VIF) and Bharti Airtel Limited, which was more than offset the
growth in the subscriber base of Reliance Jio Infocom Limited. Meanwhile, it was said that
Vodafone Idea is likely to be worst hit as Bharti Airtel has sufficient liquidity to pay up the
remaining dues and can recover in the future as well.

2.1.2 (Megha Gaste and Prof. Vanishri R. Hundekar, 2017) concluded that finance is a
lifeblood for every business and to survive for a longer period of time finance is required for every
business. First step is to develop the financial health of the organization, and next step is to compare
the financial result of the firm with same industry or firm which helps to improve the financial
position of the company. Every business wants to improve the profitability by increasing the
financial performance of the company. For the analysis of financial performance, the company
gives more focus on maximizing profit and sales. So, that the company can work better and can
improve the areas wherever it is required, in order to earn more profit in the upcoming years and
to get more stronger financial position than the other companies. This paper concluded that the
ROCE (Return on Capital Employed) has been decreased from 18.16% to 7.86%. Vodafone and
Airtel Company have growth in their ROCE (Return on Capital Employed) and Revenue of the
Airtel Company has reached peak, BSNL and Vodafone are in growing stage but they are not
earning high revenue due to some external reasons.

2.1.3(Devaki, 2020)conducted the study to know the financial performance of Airtel, Vodafone
and Tata Teleservices. The study was done to know the financing pattern, profitability,

21
 i

indebtedness and the components of capital structure of the selected telecom

companies. The study focused on equity share capital parameter of the companies and
the data was analyzed using average mean statistical tool. The result depicted that the company
capital structure is important for maintaining a good solvency position. This also confirms the
theory that research and development activities will increase due to company capital structure.

2.1.4(Rao., 2020)conducted the study to measure profitability of Bharti Airtel, Tata

Communication and Reliance Communication in India. The study was done to determine the
liquidity and solvency of Bharti Airtel, Tata Communication and Reliance Communication, and
how these indicators determine their management efficiency. The period of study was from 2013-
14 to 2017-18. The secondary data was used from yearly financial reports of the selected
companies and from various other relevant sources the data was collected. The ratio analysis was
used as accounting tool and One-way Anova technique is used as statistical tool for the
identification of difference between the sample means. Net profit margin ratio and return on capital
methods were used for analyzing the data. The result indicated that Bharti Airtel and Tata
Communication are in a better financial condition as compared to Reliance Communication. Also,
the results of the study concluded that Reliance Communication suffered huge losses during the
study period.

2.1.5(Dr. Marimuthu, KN, Dr. Syed Azhar and Dr. B. Ramesh, 2019)conducted the study to
evaluate the financial performance of Indian telecommunication companies. The secondary data
was used from yearly financial reports of the selected companies and from various other relevant
sources the data was collected. The study was done to know the financial performance of Bharti
Airtel, Vodafone Idea and RCOM. The observation duration for the evaluation was from year
2013-14 to 2017-18. The statistical analysis was done using Dr. Edward I. Altman’s Multiple
Discriminate Analysis on various financial ratios. The result of the study concluded that Bharti
Airtel’s financial position was better and satisfactory as compared to that of Vodafone Idea and
RCOM. The study also concluded that the entry of any such new service provider can completely
disturb the functioning of the existing telecom companies.

2.1.6 (Rajat Kathuria and Mansi Kedia, 2019) conducted a study to check the fiscal health of
the telecom sector by calculating profitability & viability in terms of various financial parameters

22
 i

such as revenue, cash flow, asset utilization or implementation, operating margins,

return on equity and leverage. The secondary data was used from yearly financial
reports of the selected companies and from various other relevant sources the data was collected.
The observation duration for the evaluation was from year 2011 to 2018. The study covers both
public and private sector operators. They presented weighted average values to overcome any
structural differences between the companies. Industry across means were given in all cases to
show overall sector tendency. Fiscal data is obtained from annual reports and fiscal documents of
the concerned companies. The study indicated that the fiscal health of the telecom sector was
towards declining phase especially towards the terminal years of analysis.

2.1.7 (Bedi, 2018) conducted the study to evaluate the disparity between pre- and post-acquisition
on the financial performance of concerned telecommunication companies in terms of profitability,
liquidity and solvency. Five-year data has been taken for study of which two years are of before
merger, two years after merger and year in which merger happened were considered. The analysis
was based on various accounting ratios. The statistical tool used for analysis is sample t-Test. The
study depicted that no diversity is there in the average scores considered accounting ratios
evaluated in the pre- and post-merger duration. So, a conclusion can be given that overall financial
performance of the concerned companies didn’t enhanced in shorter duration after merger and
acquisition.

2.1.8(Mohmad Mushtaq Khan and Dr. Syed Khaja Safiuddin, 2016) conducted the study to
analyze the fiscal performance of Airtel and Vodafone. The study was based on secondary data and
with the help of this different financial ratios were calculated to know the liquidity and profitability
performance of Airtel and Vodafone. They used financial ratios and indicators are used to evaluate
the performance and to determine the financial growth of companies over years. Statistical data
analysis was done by using mean. The study concluded that an enormous difference is present in
the financial performance of Airtel and Vodafone on the basis of liquidity and profitability
performance.

2.1.9 (A. Chaitra and Dr. T. Rajendra Prasad, 2017) conducted a study for investigating the
trends in fiscal performance of the telecom sector in India. The secondary data was used for the
study, retrieved from various yearly documents of the Telecom regulatory Authority of India

23
 i

(TRAI) for the period 2010-16. The study was done for both public and private sector
companies. The study also examined the financial performance trends in these two
sectors respectively. Simple statistical tools such as averages and compounded annual growth rates
(CAGR) and simple linear regression model for the data analysis. The study concluded that the
telecom sector was showing a positive upward movement in terms of financial performance during
the observed period.

2.1.10(Dr. Sanjay Pandey, Vijay Verma and Vikas Jain, 2013) has conducted the study to
analyze the financial soundness of telecommunication companies. They have considered certain
important fiscal factors like asset utilization, turnover, profit and the other variables which are
found in P&L account, balance sheet of a company. By using these variables one can analyze fiscal
soundness in terms of viability, liquidity, sustainability, profitability. The secondary data was used
from yearly financial reports of the selected companies and from various other relevant sources
the data was collected. They focused on an empirical approach to measure fiscal soundness and to
identify important fiscal aspects and their effect on telecom companies. They have collected the
data from CMIE database and from financial statements of four telecom companies. They have
carried out their analysis using F-TEST. In their study they found out that there is a noticeable
difference in performance of telecommunication companies on the basis of the considered fiscal
ratios.

2.2 International Review

2.2.1 (Adebayo, 2016) the telecommunications industry is a critical sector for any country's
economic growth since it contributes significantly to GDP and leads to the country's development
and growth; therefore, it is critical that the sector not be overlooked. Only when the
telecommunications infrastructure is sufficient and well established will maximum growth be
realized.

2.2.2.(Kostas Karamanis , Apostolos D. Zaridis, Athina Rontogianni and Dimosthenis

Mousiolis, 2015) discovered that fixed-line telephone charges are higher than in public companies.
In contrast, when it comes to mobile telephony services, public companies have lower rates than
private companies, with the exception of sending an SMS, which is lower in private companies.

24
 i

Only in the annual standard subscription price of the Internet was a marginal difference
observed, in which public companies were cheaper.

2.2.3(Braff Adam, Passmore William, J, and Simpson Michael, 2003) telecom service
providers in the United States face a variety of issues, and the structure of the wireless market in
the United States is complex. They have discovered that they can no longer expand by adding new
customers; even new customers are likely to be migrated from other providers. In reality, churning
is expected to account for as much as 80% of new customers in 2005. Around the same time, as a
result of this situation, the service provider's average revenue per User has decreased.

2.2.4(Marine Souheil and Blanchard Jean-Marie, 2005) identify the causes of the unexpected
increase in mobile network traffic. In comparison to fixed lines, they say that cell phones based on
the Global System for Mobile Communication (GSM) standard need less investment. A wireless
infrastructure also offers greater accessibility, use sharing, and fast profitability. Furthermore, the
use of prepaid cards to the extent of 90% simplifies customer base management. Furthermore, it
is appropriate for people's lifestyles - rural, urban, and suburban subscribers.

2.2.5(E Pedersen and Methlie , 2002)studied the technological aspect and provided a
comparative viewpoint. A comparison of the slow adoption of WAP services in Europe with the
successful adoption of comparable I-mode services in Japan and technologically simple SMS-
based services in Scandinavian suggests that aggregate and technology-based models are
insufficient to explain the mobile service market. As a result, supply-side technological models
must be supplemented with the views and impact of perceptions from the demand side of the
mobile commerce end user.

2.2.6( Payal Malik and Divakar Goswami , 2007) in their paper studied the relationship between
the regulatory framework and telecom performance of Indonesia and India. They mentioned that
the performance of the sector in their study was calculated in three dimensions: first, in terms of
connectivity, the study shows that India lags behind Indonesia in terms of mobile, fixed, and
internet penetration, despite having started reform at the same time. Second, in terms of
competition, Indian consumers have a greater range of telecom service providers than Indonesian

25
 i

consumers. Third, in terms of tariffs, Indonesia's are the highest in Asia, while India's
are the lowest.

2.2.7 (Snyder, 2006) defines communication as the transfer of information between a sender and
one or more receivers. the transfer of meaningful information or ideas from one location to another
Humans communicate by sending information between themselves. Telecommunication, on the
other hand, is the transmission of data or information over a long distance. Tele is a Greek word
that means "far away." As a result, it classifies smoke signals, semaphore flags, lanterns and signal
flares, telegraph systems, televisions, telephones, written letters, and hand signals as
telecommunications capabilities. These forms of communication have issues with reliability,
transmission speed, and comprehension.

2.2.8(Stehman, 1995)the telecom sector has experienced rapid growth, innovation, and
development in the service and transmission markets. In a competitive environment, the legally
protected public or private monopolist does not have the same incentive to promote innovation.
As a result, government involvement based on the natural monopoly argument overlooks dynamic
aspects that are critical in the telecommunications sector.

2.2.9( Marine Souheil and Blanchard Jean-Marie , 2005) the development of cell phones is
primarily responsible for the unexpected increase in mobile networks. Furthermore, he stated that
the lower capital expenditure is another reason for the development of the mobile market, as it
required less investment when compared to the land line business. Aside from that, wireless
technology is more adaptable and profitable, and the use of prepaid cards has resulted in better
subscriber database management. Furthermore, it has been observed to be a very comfortable mode
of communication for people living in different parts of the country.

2.2.10( Carlsson Jeanette and Arias Salvador, 2004)wireless substitution is causing customer
migration from wire-line to wireless, which has resulted in price competition. He goes on to say
that this has reduced the margins for telecom operators. He stated that as a result of this changing
scenario, the average revenue in developing countries fell by around 3% between 1999 and 2003.

26
 i

2.3 Literature Survey

The literature survey on financial statement analysis encompasses a robust foundation in

theoretical frameworks, notably ratio and DuPont analysis. Scholars like Beaver and Altman
pioneered these approaches, providing structured methods for interpreting financial data.
Empirical studies, led by Penman and Collins, substantiate the practical utility of financial ratios
in predicting a firm's future performance and financial health.

Complementing quantitative methodologies, Johnson and Kaplan emphasize the integration of

qualitative factors in financial analysis. Their work underscores the importance of considering
management quality, corporate governance, and industry dynamics, offering a holistic perspective
beyond numerical indicators.

Recent trends in financial statement analysis highlight the transformative impact of technology.
Brown et al. explore the implications of big data and artificial intelligence, revolutionizing
traditional approaches and enabling real-time analysis. This technological shift reflects an ongoing
evolution in the methodologies applied to financial statement analysis.

Challenges within the literature point to the difficulties of comparing financial statements across
global contexts due to varying accounting standards. Scholars, including Nobes, advocate for
global harmonization to enhance the comparability of financial statements. Additionally, the
dynamic nature of business environments, highlighted by Subramanyam, calls for adaptable
frameworks that can accommodate rapid changes in markets, technologies, and regulatory
landscapes.

In conclusion, the literature survey portrays financial statement analysis as a dynamic field,
evolving with technological advancements, an increased emphasis on sustainability, and the
recognition of the need for adaptable analytical frameworks. The synthesis of traditional and
contemporary approaches provides a comprehensive understanding of the complexities inherent
in evaluating a company's financial performance and health.

27
 i

CHAPTER III:

28
 i

Research Methodology

3.1 Research Objectives

➢ To analyze the income statement to determine the company's ability to generate profits.
➢ Understanding the company's growth potential, stability, and overall financial trajectory.
➢ Identifying the reasons for change in profitability and financial position.
➢ To provide decision makers information about a business enterprise for use in decision-
making.
➢ To study and compare the financial position of Vodafone Idea Limited and Bharti Airtel
Limited on the basis of ratio analysis.

3.2 Scope of Study

The scope of the study encompasses Ratio Analysis and Comparative Statement Analysis as
powerful tools for evaluating and understanding the financial health and performance of
organizations. Ratio Analysis involves the examination of various financial ratios derived from a
company's financial statements, providing insights into its liquidity, profitability, solvency, and
efficiency. This analytical approach facilitates a comprehensive understanding of the financial
structure and operational efficiency of a company over time. On the other hand, Comparative
Statement Analysis involves the comparison of financial statements, such as income statements
and balance sheets, over different periods or with those of competitors. This method aids in
identifying trends, patterns, and deviations, offering a nuanced view of a company's financial
standing in comparison to its past performance or industry peers. Together, Ratio Analysis and
Comparative Statement Analysis offer a holistic perspective, enabling stakeholders, including
investors, managers, and analysts, to make informed decisions, formulate strategies, and assess the
relative financial standing of companies within the broader economic context.

29
 i

3.3 Data Collection

Data was collected through secondary data sources. Secondary data consist of information that
already exists somewhere, having been collected for some other purpose. In this study secondary
data was collected from audited financial statements periodicals and other records maintained by
Vodafone Idea Limited and Bharti Airtel Limited.

3.4 Sampling

We have considered Vodafone Idea Limited and Bharti Airtel Limited as the sampling for our
study on the basis market capitalization and operating revenue.

3.5 Secondary Research

The research is based on secondary data sources. Annual reports, Balance sheets, journals, books
were used to gather the necessary information. The data for the analysis was collected over a four-
year period, from 2019 to 2023. For this analysis, the convenience sampling methods are used.
Here are some key ratios commonly used in financial statement analysis:

➢ Current Ratio = Current Assets / Current Liabilities

➢ Liquid Ratio = Liquid Assets / Current Liabilities
➢ Absolute Liquid Ratio = Absolute Liquid Assets / Liquid Liabilities
➢ Debt-Equity Ratio = Debt / Equity
➢ Proprietary Ratio = Shareholder’s Funds / Total Assets
➢ Inventory Turnover Ratio = Cost of Goods Sold / Average Stock or Inventory
➢ Total Assets Turnover Ratio = Net Sales or Cost of Goods Sold / Total Assets
➢ Fixed Assets Turnover Ratio = Net Sales or Cost of Goods Sold / Fixed Assets
➢ Gross Profit Ratio = Gross Profit X 100 / Net Sales
➢ Net Profit Ratio = Net Profit X 100 / Net Sales
➢ Return on Investment (ROI): (Net Profit / Initial Investment) x 100

30
 i

These ratios provide a comprehensive picture of a company's financial performance

and position. It's important to note that the interpretation of these ratios may vary across
industries, and a thorough analysis often involves comparing the ratios with industry benchmarks
and historical performance.

3.6 Period of the study

The data of four financial years were taken for the study. The financial data from 2020 to 2023 of
Vodafone Idea Limited and Bharti Airtel Limited was used in this investigation.

3.7 Tools used for Financial Statement Analysis

Financial statement analysis involves the use of various tools and methods to assess the financial
performance and position of a company. Here are some common tools used for financial statement
analysis:

1. Ratio Analysis

Ratio analysis is a method of financial statement analysis that involves the calculation and
interpretation of various financial ratios to evaluate a company's performance, profitability,
financial health, and operational efficiency. It is a quantitative procedure of obtaining a look into
a firm's functional efficiency, liquidity, revenues, and profitability by analyzing its financial
records and statements. Ratio analysis is a very important factor that will help in doing an analysis
of the fundamentals of equity. These ratios are derived from the financial statements such as the
income statement, balance sheet, and cash flow statement and provide valuable insights into
different aspects of a company's financial condition.

There are certain types of Ratio Analysis :

Liquidity Ratio - Liquidity ratios are financial metrics that measure a company's ability to meet its
short-term obligations and convert assets into cash quickly. These ratios provide insights into the
company's liquidity, which is crucial for its day-to-day operations and financial stability. The

31
 i

liquidity ratio is crucial for various stakeholders, including creditors, investors, and
management, as they provide insights into the company's short-term financial health.
A higher liquidity ratio suggests a better ability to cover short-term obligations, but excessively
high ratios may indicate inefficient use of resources. Conversely, low liquidity ratios may raise
concerns about a company's ability to meet its immediate financial commitments. It's important to
note that the optimal liquidity ratio can vary by industry, and the interpretation of these ratios
should consider the company's specific circumstances and financial strategy. While liquidity ratios
focus on short-term financial health, they are just one aspect of a comprehensive financial analysis.

Profitability Ratio - Profitability ratios are financial metrics that assess a company's ability to
generate profit in relation to its revenue, assets, equity, and other financial metrics. These ratios
provide insights into the efficiency and effectiveness of a company's operations and are crucial for
investors, analysts, and management to evaluate the overall financial performance. Profitability
ratios are crucial for assessing the financial health and performance of a company, providing
valuable insights into its ability to generate sustainable profits over time. When used in conjunction
with other financial metrics, these ratios offer a comprehensive picture of a company's overall
financial viability.

Solvency Ratio - Solvency ratios are financial metrics that assess a company's ability to meet its
long-term debt obligations and continue its operations without facing financial distress. These
ratios provide insights into the financial leverage and long-term stability of a company. Solvency
ratios are particularly important for creditors and investors who are interested in the long-term
financial health and risk associated with a company. It's important to note that the interpretation of
solvency ratios can vary across industries, and what may be considered an acceptable level of debt
for one industry could be perceived as risky in another. Additionally, solvency ratios are just one
aspect of a comprehensive financial analysis, and it's crucial to consider them in conjunction with
other financial metrics and qualitative factors.

32
 i

2. Comparative Statement Analysis

Comparative statement analysis, also known as horizontal analysis or trend analysis, is a method
of financial statement analysis that involves comparing financial data over multiple periods to
identify trends, patterns, and changes in performance. The objective is to assess the relative growth
or decline in various financial line items and understand how key components of financial
statements have changed over time.

This analysis typically involves comparing the financial statements of a company across different
periods, such as comparing annual financial statements over several years. The key financial
statements used in comparative statement analysis include the income statement, balance sheet,
and cash flow statement. By examining financial statements over different periods, comparative
statement analysis provides a dynamic view of a company's financial health and performance,
aiding in better decision-making and strategic planning.

Here's how comparative statement analysis is typically conducted:

Income Statement Analysis: Compare revenue, expenses, and net income over several years to
identify trends in sales growth, cost patterns, and overall profitability.

Balance Sheet Analysis: Compare assets, liabilities, and shareholders' equity over different
periods to analyze changes in the company's financial position. This can include examining
changes in current assets, current liabilities, and long-term assets and liabilities.

Cash Flow Statement Analysis: Examine changes in operating, investing, and financing cash
flows over time to understand the company's ability to generate cash and how it uses and sources
cash.

Percentage Analysis: Express each line item as a percentage of a base figure, often taking a key
line item (such as total revenue or total assets) as 100%. This helps in assessing the proportional
contribution of each item to the overall financial picture.

33
 i

3.8 Limitation of the study

There were some limitations found while conducting is research study :

➢ Financial statements primarily provide historical data.

➢ Differences in accounting policies, such as depreciation methods or revenue recognition
criteria, can impact the comparability of financial statements.
➢ Financial statements often lack qualitative information about management capabilities,
employee satisfaction, market conditions, and other non-financial factors that can
significantly impact a company's performance.
➢ Factors beyond a company's control, such as changes in interest rates, inflation, or
geopolitical events, can impact financial performance.
➢ Financial statements are often more reflective of short-term results, and an overemphasis
on quarterly or annual performance may lead to decisions that do not consider the long-
term sustainability of a company.

34
 i

CHAPTER IV:

35
 i

Data Analysis and Data Interpretation

4.1 Ratio Analysis

• Liquidity Ratios: To meet its commitments, business needs liquid funds. The ability of the
business to pay the amount due to stakeholders as and when it is due is known as liquidity, and the
ratios calculated to measure it are known as ‘Liquidity Ratios’. These are essentially short-term in
nature

. • Solvency Ratios: Solvency of business is determined by its ability to meet its contractual
obligations towards stakeholders, particularly towards external stakeholders, and the ratios
calculated to measure solvency position are known as ‘Solvency Ratios’. These are essentially
long-term in nature.

• Activity (or Turnover) Ratios: This refers to the ratios that are calculated for measuring the
efficiency of operations of business based on effective utilization of resources. Hence, these are
also known as ‘Efficiency Ratios’.

• Profitability Ratios: It refers to the analysis of profits in relation to revenue from operations or
funds (or assets) employed in the business and the ratios calculated to meet this objective are
known as ‘Profitability Ratios’.

4.1.A Liquidity Ratios : - Liquidity ratios are calculated to measure the short-term solvency
of the business, i.e., the firm’s ability to meet its current obligations. These are analyzed by looking
at the amounts of current assets and current liabilities in the balance sheet. The two ratios included
in this category are current ratio and liquidity ratio.

4.1.1 Current Ratio: - Current ratio is the proportion of current assets to current liabilities.
It is expressed as follows:

𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑬𝑻𝑺
Current Ratio =
𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑳𝑰𝑨𝑩𝑰𝑳𝑰𝑻𝑰𝑬𝑺

36
 i

Current assets include: - current investments, inventories, trade receivables (debtors

and bills receivables), cash and cash equivalents, short-term loans and advances and other current
assets such as prepaid expenses, advance tax and accrued income, etc.

Current liabilities include: - short-term borrowings, trade payables (creditors and bills payables),
other current liabilities and short-term provisions.

Significance: It provides a measure of degree to which current assets cover current liabilities. The
excess of current assets over current liabilities provides a measure of safety margin available
against uncertainty in realization of current assets and flow of funds. The ratio should be
reasonable. It should neither be very high or very low. Both the situations have their inherent
disadvantages. A very high current ratio implies heavy investment in current assets which is not a
good sign as it reflects underutilization or improper utilization of resources. A low ratio endangers
the business and puts it at risk of facing a situation where it will not be able to pay its short-term
debt on time. If this problem persists, it may affect firms credit worthiness adversely. Normally, it
is safe to have this ratio within the range of 2:1

Table 4.1.1

Year Vodafone Idea Bharti Airtel

2020 0.23 0.63

2021 0.29 0.56

2022 0.35 0.51

2023 0.30 0.52

AVERAGE 0.29 0.55

37
 i

Current Ratio
0.8
0.6
0.4
0.2
0
2020
2021
2022
2023

Vodafone Idea Bharti Airtel Column1

Interpretation : The data presented here reveals that in the year 2020, the current ratio was 0.63
for Bharti Airtel limited and for Vodafone Idea Limited it was 0.23. In the year 2021, the ratio was
0.56 for Bharti Airtel limited and for Vodafone Idea Limited it was 0.29 and in the year 2022, the
ratio was 0.51 for Bharti Airtel limited and for Vodafone Idea Limited it was 0.35 . And in year
2023 the current ratio is0.52 for Bharti Airtel ltd and for Vodafone Idea ltd is 0.30. Bharti Airtel
Limited has an average current ratio of 0.55, while Vodafone Idea Limited has an average current
ratio of 0.29. Hence, the current ratio of Bharti Airtel limited is better than Vodafone Idea Limited.

4.1.2 Quick Ratio

It is the ratio of quick (or liquid) asset to current liabilities. It is expressed as

𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑻𝑬𝑺
Quick Ratio =
𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑳𝑰𝑨𝑩𝑰𝑳𝑰𝑻𝑰𝑬𝑺

The quick assets are defined as those assets which are quickly convertible into cash. While
calculating quick assets we exclude the inventories at the end and other current assets such as
prepaid expenses, advance tax, etc., from the current assets. Because of exclusion of non-liquid

38
 i

current assets, it is considered better than current ratio as a measure of liquidity position
of the business. It is calculated to serve as a supplementary check on liquidity position of the
business and is therefore, also known as ‘Acid-Test Ratio’.

Significance: The ratio provides a measure of the capacity of the business to meet its short-term
obligations without any flaw. Normally, it is advocated to be safe to have a ratio of 1:1 as
unnecessarily low ratio will be very risky and a high ratio suggests unnecessarily deployment of
resources in otherwise less profitable short-term investments.

Table 4.1.2

Year Vodafone idea Bharti Airtel

2020 0.23 0.63

2021 0.29 0.56

2022 0.35 0.51

2023 0.30 0.52

AVERAGE 0.29 0.55

Quick Ratio

0.8

0.6

0.4
0.2
0
2020
2021
2022
2023

Vodafone Idea Bharti Airtel

39
 i

Interpretation : The data presented here reveals that in the year 2020, the quick ratio
was 0.63 for Bharti Airtel limited and for Vodafone Idea Limited it was 0.23. In the year 2021, the
ratio was 0.56 for Bharti Airtel limited and for Vodafone Idea Limited it was 0.29 and in the year
2022, the ratio was 0.51 for Bharti Airtel limited and for Vodafone Idea Limited it was 0.35 . And
in year 2023 the current ratio is0.52 for Bharti Airtel ltd and for Vodafone Idea ltd is 0.30. Bharti
Airtel Limited has an average quick ratio of 0.55, while Vodafone Idea Limited has an average
current ratio of 0.29. Hence, the quick ratio of Bharti Airtel limited is better than Vodafone Idea
Limited.

4.1.B Solvency Ratios: - The persons who have advanced money to the business on long-
term basis are interested in safety of their periodic payment of interest as well as the repayment of
principal amount at the end of the loan period. Solvency ratios are calculated to determine the
ability of the business to service its debt in the long run.

1.Debt-Equity Ratio

Debt-Equity Ratio measures the relationship between long-term debt and equity. If debt
component of the total long-term funds employed is small, outsiders feel more secure. From
security point of view, capital structure with less debt and more equity is considered favorable as
it reduces the chances of bankruptcy. Normally, it is considered to be safe if debt equity ratio is
2:1. However, it may vary from industry to industry. It is computed as follows:

Debt-Equity Ratio = Long Term borrowing(debt)/ shareholder’s fund

where: Shareholders’ Funds (Equity) = Share capital + Reserves and Surplus + Money received
against share warrants Share Capital = Equity share capital + Preference shares capital or
Shareholders’ Funds (Equity) = non-current assets + Working capital – Noncurrent liabilities
Working Capital = Current Assets – Current Liabilities

40
 i

Significance: This ratio measures the degree of indebtedness of an enterprise and gives
an idea to the long-term lender regarding extent of security of the debt. As indicated earlier, a low
debt equity ratio reflects more security. A high ratio, on the other hand, is considered risky as it
may put the firm into difficulty in meeting its obligations to outsiders. However, from the
perspective of the owners, greater use of debt (trading on equity) may help in ensuring higher
returns for them if the rate of earnings on capital employed is higher than the rate of interest
payable.

Table 4.1.3

Year Vodafone Idea Bharti Airtel

2020 10.71 0.81

2021 -4.18 1.22

2022 -3.11 1.31

2023 -2.73 1.79

AVERAGE 0.17 1.28

Debt to Equity Ratio

15

10

5
Bharti Airtel
0
2020 Vodafone Idea
-5 2021
2022
2023

Vodafone Idea Bharti Airtel

41
 i

Interpretation : The data presented here reveals that in the year 2020, the debt-to-equity
ratio was 0.81 for Bharti Airtel limited and for Vodafone Idea Limited it was 10.71 . In the year
2021, the ratio was 1.22 for Bharti Airtel limited and for Vodafone Idea Limited it was -4.18 and
in the year 2022, the ratio was 1.31 for Bharti Airtel limited and for Vodafone Idea Limited it was
-3.11 . And in year 2023 the current ratio is 1.79 for Bharti Airtel ltd and for Vodafone Idea ltd is
-2.73. Bharti Airtel Limited has an average debt to equity ratio of 1.28 , while Vodafone Idea
Limited has an average current ratio of 0.17 . Hence, the Debt-to-Equity Ratio of Bharti Airtel
limited is better than Vodafone Idea Limited.

2. Proprietary Ratio

The proprietary ratio, also known as the equity ratio or net worth-to-total assets ratio, is a financial
metric that measures the proportion of a company's total assets financed by its shareholders' equity.
It provides insight into the extent to which a company relies on equity (owner's funds) versus debt
to finance its assets.

The formula for calculating the proprietary ratio is:

Proprietary Ratio = Shareholders' Equity/Total Assets

In this formula:

- Shareholders' Equity is the residual interest in the assets of the company after deducting
liabilities. It includes common stock, retained earnings, and additional paid-in capital.

- Total Assets represent all the resources owned by the company.

The proprietary ratio is expressed as a percentage, and a higher ratio indicates a larger proportion
of assets financed by equity, which is generally considered favorable. It suggests that the company
has a lower reliance on debt for financing its operations and is less leveraged.

On the other hand, a lower proprietary ratio may indicate higher financial leverage, implying that
a significant portion of the company's assets is funded through debt. While some level of debt can
42
 i

be normal and manageable, excessively high leverage can increase financial risk, as
interest payments on debt need to be made regardless of the company's profitability.
Investors and analysts use the proprietary ratio to assess a company's financial structure and risk
profile.

Significance : It's important to note that while a high proprietary ratio can suggest financial
stability, an extremely high ratio may also indicate that the company is not leveraging enough and
might not be maximizing its potential returns on equity. Like any financial ratio, the proprietary
ratio is most meaningful when considered in the context of the industry, company size, and specific
business dynamics.

Table 4.1.4

Year Vodafone Idea Bharti Airtel

2020 0.31 0.33

2021 -0.18 0.27

2022 -3.16 0.27

2023 -0.3 0.23

AVERAGE -0.8 0.27

Proprietory Ratio

1
Bharti Airtel
0
Vodafine Idea
-1 2020
2021
2022
-2 2023
-3
-4

Vodafine Idea Bharti Airtel

43
 i

Inference : The Proprietary Ratio in 2020 for Vodaphone Idea ltd was 0.31 and for
Bharti Airtel was 0.31 . The ratio in 2021 for Vodafone Idea ltd was -0.18 which is negative and
for Bharti Airtel was 0.27. The ratio in 2022 for Vodafone Idea ltd was -3.16 which is negative
and for Bharti Airtel ltd was 0.27. The ratio in 2023 for Vodafone Idea is -0.3 again negative and
for Bharti Airtel is 0.23 which is yet positive . The Average Proprietary Ratio for Vodafone Idea
is -0.8 and for Bharti Airtel is 0.27. Therefore, Proprietary Ratio of Bharti Airtel is higher than
Vodafone Idea ltd which shows company stability for Bharti Airtel .

4.1.C Profitability Ratios: -

1.Operating profit ratio: -

It is calculated to reveal operating margin. It may be computed directly or as a residual of operating

ratio

Operating Profit Ratio = 100 – Operating Ratio

Alternatively, it is calculated as under:

Operating Profit Ratio = Cost of goods sold + Operating Expenses/ Net Sales or Net Revenue
from Operation (RFO)*100

Where, Operating Profit = Revenue from Operations – Operating Cost

Significance: Operating ratio is computed to express cost of operations excluding financial

charges in relation to revenue from operations. A corollary of it is ‘Operating Profit Ratio’. It helps
to analyze the performance of business and throws light on the operational efficiency of the
business. It is very useful for inter-firm as well as intra-firm comparisons .

44
 i

Table 4.1.4

Year Bharti Airtel Vodafone Idea

2020 47.90 31.91

2021 49.23 39.18

2022 50.92 40.28

2023 51.92 38.58

AVERAGE 49.99 37.48

Operating Profit Ratio

60
50
40
30
20
10
0
2020
2021
2022
2023

Bharti Airtel Vodafone Idea

Interpretation : The data presented here reveals that in the year 2020, the debt-to-equity ratio was
47.90 for Bharti Airtel limited and for Vodafone Idea Limited it was 31.91 . In the year 2021, the
ratio was 49.23 for Bharti Airtel limited and for Vodafone Idea Limited it was 39.18 and in the
year 2022, the ratio was 50.92 for Bharti Airtel limited and for Vodafone Idea Limited it was 40.28
and in year 2023 the ratio is 51.92 for Bharti Airtel ltd and for Vodafone Idea ltd is 38.58. Bharti

45
 i

Airtel Limited has an average operating profit ratio of 49.99 , while Vodafone Idea
Limited has an average operating profit ratio of 37.48. Hence, the Operating Profit
Ratio of Bharti Airtel limited is better than Vodafone Idea Limited.

2.Gross profit ratio: -

Gross profit ratio as a percentage of revenue from operations is computed to have an idea about
gross margin. It is computed as follows:

Gross Profit Ratio = Gross Profit/Net Revenue of Operations × 100

Significance: It indicates gross margin on products sold. It also indicates the margin available to
cover operating expenses, non-operating expenses, etc. Change in gross profit ratio may be due to
change in selling price or cost of revenue from operations or a combination of both. A low ratio
may indicate unfavorable purchase and sales policy. Higher gross profit ratio is always a good
sign.

Table 4.1.5

Year Vodafone Idea Bharti Airtel

2020 39.3 55.48

2021 44.9 57

2022 45.7 63.23

2023 43.5 65.56

AVERAGE 43.35 60.31

46
 i

Gross profit ratio

80

60

40

20 C…

0 B…
2020
2021 V…
2022
2023

Vodafone Idea Bharti Airtel

Interpretation : The data presented here reveals that in the year 2020, the Gross profit ratio was
55.48 for Bharti Airtel limited and for Vodafone Idea Limited it was 39.3 . In the year 2021, the
ratio was 57 for Bharti Airtel limited and for Vodafone Idea Limited it was 44.9 and in the year
2022, the ratio was 63.23 for Bharti Airtel limited and for Vodafone Idea Limited it was 45.7 .
And in year 2023 the current ratio is 65.56 for Bharti Airtel ltd and for Vodafone Idea ltd is 43.5.
Bharti Airtel Limited has an average gross profit ratio of 60.31 , while Vodafone Idea Limited has
an average gross profit ratio of 43.35. Hence, the Gross Profit Ratio of Bharti Airtel limited is
better than Vodafone Idea Limited.

3. Net Profit Ratio :

The net profit ratio, also known as the net profit margin, is a financial metric that expresses a
company's net profit as a percentage of its revenue or sales. It is a profitability ratio that provides
insight into how well a company is able to convert its sales into profit.

47
 i

The formula for calculating the net profit ratio is:

Net Profit Ratio = Net Profit/Net Sales ×100

Where:

- Net Profit is the total revenue minus total expenses and taxes.

- Net Sales is the total sales revenue minus any returns, allowances, and discounts.

The result is typically expressed as a percentage. A higher net profit ratio indicates better
profitability, as it means the company is able to retain a larger portion of its sales as profit after
covering all expenses.

Significance :It's important to note that the net profit ratio can vary across industries, and what
might be considered a good or bad ratio depends on the specific industry and its benchmarks.
Additionally, changes in the net profit ratio over time can be indicative of a company's financial
performance and management efficiency.

Table 4.1.6

Year Vodafone Idea Bharti Airtel

2020 -96.20 8.89

2021 -57.93 -5.40

2022 -73.34 6.16

2023 -68.91 8.83

AVERAGE -74.09 4.62

48
 i

Net Profit Margin

50

bharti airtel
0
vodafone idea
Category 1 2021
-50 2022
2023

-100

vodafone idea bharti airtel

Interpretation : The data presented here reveals that in the year 2020, the Net Profit ratio was 8.89
for Bharti Airtel limited and for Vodafone Idea Limited it was -96.20 . In the year 2021, the ratio
was -5.40 for Bharti Airtel limited and for Vodafone Idea Limited it was -57.93 and in the year
2022, the ratio was 6.16 for Bharti Airtel limited and for Vodafone Idea Limited it was -73.34 .
And in year 2023 the current ratio is 8.83 for Bharti Airtel ltd and for Vodafone Idea ltd is -68.91.
Bharti Airtel Limited has an average net profit ratio of 4.62 , while Vodafone Idea Limited has
continuous average loss of -74.09 . Hence, the Net Profit Ratio of Bharti Airtel limited is better
than Vodafone Idea Limited.

4.1.D Activity (or Turnover or efficiency) Ratio: -

These ratios indicate the speed at which, activities of the business are being performed. The activity
ratios express the number of times assets employed, or, for that matter, any constituent of assets,
is turned into sales during an accounting period. Higher turnover ratio means better utilization of
assets and signifies improved efficiency and profitability, and as such are known as efficiency
ratios.

1.Fixed assets turnover ratio: - The fixed asset turnover ratio (FAT) is, in general, used by
analysts to measure operating performance. This efficiency ratio compares net sales (income

49
 i

statement) to fixed assets (balance sheet) and measures a company's ability to generate
net sales from its fixed-asset investments, namely property, plant, and equipment
(PP&E).The fixed asset balance is used as a net of accumulated depreciation. A higher fixed asset
turnover ratio indicates that a company has effectively used investments in fixed assets to generate
sales.

The formula for the fixed asset turnover ratio is:

Fixed assets turnover Ratio = Net sales/ average fixed assets

Table 4.1.7

Year Vodafone Idea Bharti Airtel

2020 19.53 18.08

2021 20.51 23.15

2022 0.19 0.25

2023 0.21 0.27

AVERAGE 10.11 10.43

Fixed Assets Turnover Ratio

25

20

15

10

5 bharti airtel
0
2020 vodaphone idea
2021
2022
2023

vodaphone idea bharti airtel

50
 i

Interpretation : The data presented here reveals that in the year 2020, the fixed asset
turnover ratio was 18.08 for Bharti Airtel limited and for Vodafone Idea Limited it was
19.53. In the year 2021, the ratio was 23.15 for Bharti Airtel limited and for Vodafone Idea Limited
it was 20.51 and in the year 2022, the ratio was 0.25 for Bharti Airtel limited and for Vodafone
Idea Limited it was 0.19 . And in year 2023 the current ratio is 0.27 for Bharti Airtel ltd and for
Vodafone Idea ltd 0.21. Bharti Airtel Limited has an average fixed assets turnover ratio of 10.43 ,
while Vodafone Idea Limited has an average current ratio of 10.11. Hence, the fixed asset turnover
ratio of Bharti Airtel limited is better than Vodafone Idea Limited.

2. Return on Assets Ratio

The Return on Assets (ROA) ratio is a financial metric that measures a company's ability to
generate profit from its assets. It is expressed as a percentage and is calculated by dividing the net
income by the average total assets.

The formula for calculating ROA is:

ROA = (Net Income /Average Total Assets) ×100

Where:

- Net Income is the company's profit after taxes and other expenses.

- Average Total Assets is the average value of a company's total assets over a specific period, often
calculated as the average of the beginning and ending total asset values.

The ROA ratio provides insight into how efficiently a company is utilizing its assets to generate
profit. A higher ROA indicates that the company is more effective in using its assets to generate
earnings. Conversely, a lower ROA suggests that the company is less efficient in converting its
assets into profit.

51
 i

Significance: ROA is a useful metric for comparing the relative performance of

companies in the same industry or for evaluating a company's historical performance.
Like other financial ratios, it is important to consider industry benchmarks and the company's
specific circumstances when interpreting ROA. Different industries may have different typical
ROA levels due to variations in capital intensity and business models.

Table 4.1.8

Year Vodafone Idea Bharti Airtel

2020 -31.95 -11.21

2021 -22.79 -7.10

2022 -14.56 2.48

2023 -14.13 3.19

AVERAGE -20.85 -3.16

Return on Asstes%

10
Bharti Airtel
0
2020 Vodafone Idea
-10 2021
2022
2023
-20

-30

-40

Vodafone Idea Bharti Airtel

52
 i

Inference : The Return on Assets Ratio in 2020 for Vodaphone Idea ltd was -31.95
which was negative and for Bharti Airtel is -11.21 which is also negative . The ratio in
2021 for Vodafone Idea ltd was -22.79 which is negative and for Bharti Airtel was -7.10 which is
also negative . The ratio in 2022 for Vodafone Idea ltd was -14.56 which is negative and for Bharti
Airtel ltd was 2.48 which is a positive return . The ratio in 2023 for Vodafone Idea is -14.13 again
negative and for Bharti Airtel is 3.19 which is yet positive . The Average Return on Assets Ratio
for Vodafone Idea is -20.85 and for Bharti Airtel is -3.16 . Therefore, Return on Assets Ratio of
Bharti Airtel is greater than Vodafone Idea ltd.

3. Inventory Turnover Ratio

The inventory turnover ratio is a financial metric that measures how many times a company's
inventory is sold and replaced over a specific period. It provides insights into how efficiently a
company manages its inventory. The formula for calculating the inventory turnover ratio is:

Inventory Turnover Ratio= Cost of Goods Sold /Average Inventory

Where:

- Cost of Goods Sold (COGS) represents the total cost of producing or purchasing the goods that
were sold during a specific period.

- Average Inventory is the average value of inventory during the same period, often calculated as
the average of the beginning and ending inventory values.

A higher inventory turnover ratio indicates that a company is selling its inventory more frequently,
which is generally considered positive as it implies efficient inventory management. However, an
extremely high ratio might suggest that the company is understocked, potentially leading to lost
sales if demand exceeds supply. On the other hand, a lower inventory turnover ratio may indicate
overstocking or slow-moving inventory, tying up capital and potentially leading to obsolescence
or increased holding costs.

53
 i

Significance: It's essential to compare the inventory turnover ratio with industry
benchmarks and consider the company's specific circumstances to draw meaningful
conclusions about its efficiency in managing inventory. Different industries may have different
typical inventory turnover levels based on their nature and business models.

Table 4.1.9

Year Vodafone Idea Bharti Airtel

2020 6585.25 284.67

2021 12268.97 204.59

2022 11682.41 133.68

2023 1934.12 151.49

Average 8117.68 193.6

Inventory Turnover Ratio

14000
12000
10000
8000
6000
4000
2000 Bharti Airtel
0
2020 Vodafone Idea
2021
2022
2023

Vodafone Idea Bharti Airtel Series 3

54
 i

Inference : The Inventory Turnover Ratio in 2020 for Vodaphone Idea ltd was 6585.25
which was negative and for Bharti Airtel is 284.67which is also negative . The ratio in
2021 for Vodafone Idea ltd was 12268.97which is negative and for Bharti Airtel was 204.59 which
is also negative . The ratio in 2022 for Vodafone Idea ltd was 11682.4which is negative and for
Bharti Airtel ltd was 133.68 which is a positive return . The ratio in 2023 for Vodafone Idea is
1934.12again negative and for Bharti Airtel is 151.49 which is yet positive . The Average
Inventory Turnover Ratio for Vodafone Idea is 8117.68 and for Bharti Airtel is 193.6. Therefore,
Inventory Turnover Ratio of Bharti Airtel is greater than Vodafone Idea ltd which is a positive
change for Bharti Airtel .

4.1.E Return on Investment

Return on Investment (ROI) is a financial metric used to evaluate the profitability of an
investment or to compare the efficiency of different investments. It is expressed as a percentage
and is calculated using the following formula:

Return on investment = Net Profit /Cost of Investment ×100

Here, Net Profit refers to the gain or loss from the investment, and Cost of Investment is the total
amount invested.

Key points about Return on Investment:

➢ ROI is a measure of the profitability of an investment. It indicates how effectively the

investment has generated profits relative to its cost.
➢ ROI provides a standardized way to compare the profitability of different investments,
regardless of their size or the scale of the returns.
➢ Being expressed as a percentage, ROI makes it easy to understand the return relative to the
initial investment. For example, an ROI of 10% means that for every dollar invested, the
return is 10 cents.
➢ ROI considers both the gains and the costs associated with an investment. This includes
not only the initial cost but also any additional costs incurred during the investment period.

55
 i

➢ Businesses and investors use ROI as a decision-making tool when evaluating

various investment opportunities. It helps them prioritize investments that offer
the best returns relative to their costs.

➢ ROI doesn't inherently consider the timeframe of the investment. For a more
comprehensive analysis, it's essential to understand the time it takes for the investment to
generate returns.
➢ While ROI is a widely used metric, it has some limitations. It may not account for the time
value of money, and it assumes a linear relationship between investment and return, which
may not always be the case.
➢ ROI alone doesn't provide information about the risk associated with an investment. High
ROI might come with higher risk, and it's crucial to assess risk factors separately.
➢ ROI is applicable in various contexts, including business investments, marketing
campaigns, real estate, and personal finance.

In summary, ROI is a versatile metric used to assess the profitability and efficiency of investments.
However, it should be used alongside other financial metrics and considerations to make well-
informed investment decisions.

Significance : Return on Investment (ROI) is a crucial financial metric that measures the
profitability of an investment relative to its cost. The significance of ROI lies in its ability to
provide a clear and standardized way to evaluate the efficiency and effectiveness of investments.
By expressing the return as a percentage of the initial investment, ROI allows investors and
businesses to compare the performance of different investments and make informed decisions
about resource allocation. A positive ROI indicates that the investment has generated profit, while
a negative ROI suggests a loss. This metric is widely used in financial analysis, investment
decision-making, and performance evaluation. For businesses, a high ROI is generally desirable
as it signifies that the company is generating substantial returns on its investments, contributing to
overall financial health and sustainability. Investors often use ROI to assess the potential of various
opportunities and to optimize their portfolio for maximum returns. Overall, ROA is a fundamental

56
 i

tool for evaluating the success and efficiency of financial decisions across various
sectors and industries.

Table 4.1.10

Year Vodafone Idea Bharti Airtel

2020 -6.71 2.7

2021 -2.62 4.8

2022 -3.37 6.9

2023 -2.83 8.4

AVERAGE -3.88 5.7

Chart Title

10
8
6
4
2
0
-2 2020
-4 2021
2022
-6
2023
-8

Vodafone Idea Bharti Airtel

57
 i

Interpretation : The ROI in 2020 for Vodaphone Idea ltd was -6.71 which was negative and for
Bharti Airtel is 2.7. The ratio in 2021 for Vodafone Idea ltd was -2.62 which is negative and for
Bharti Airtel was 204.59. The ratio in 2022 for Vodafone Idea ltd was -3.37 which is negative and
for Bharti Airtel ltd was 6.9. The ratio in 2023 for Vodafone Idea is -2.83 again negative and for
Bharti Airtel is 8.4 which is yet positive . The Average ROI for Vodafone Idea is -3.88 and for
Bharti Airtel is 5.7. Therefore, Return on Investment of Bharti Airtel is greater than Vodafone Idea
ltd which is a positive change for Bharti Airtel .

58
 i

4.2 Comparative Statement Analysis

4.2.A Income Statements Analysis

Income statement analysis is a financial analysis technique that involves examining and
interpreting the components of an income statement to gain insights into a company's financial
performance and profitability over a specific period. The income statement, also known as the
profit and loss statement or statement of earnings, summarizes a company's revenues, expenses,
gains, and losses during a particular time frame, typically quarterly or annually.

Key components of an income statements:

➢ This represents the total income generated from the company's primary operations.
➢ This includes the direct costs associated with producing goods or services sold by the
company.
➢ Calculated as revenue minus COGS, gross profit represents the amount of money left over
after covering the direct costs of producing goods or services.
➢ These include costs related to the day-to-day operations of the business, such as selling,
general, and administrative expenses.
➢ This is the result of subtracting operating expenses from gross profit. It reflects the
company's profit from its core operations.
➢ This includes gains or losses from non-operating activities, such as investments, interest,
or the sale of assets.
➢ The total income the company earned before taxes are deducted.
➢ The amount of taxes the company is obligated to pay based on its taxable income.
➢ This is the final profit figure after deducting taxes from the net income before tax.

Income statement analysis is a crucial aspect of financial analysis, providing valuable insights for
investors, creditors, and other stakeholders interested in a company's financial health and
performance.

59
 i

Table 4.2.1 This is a comparative analysis of Income Statements of 4 years data of

Bharti Airtel ltd.

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Sales/Revenue 1,391,448 1,165,469 1,006,158 846,765

Sales Growth 19.39% 15.83% 18.82% 4.82%

Cost of Goods Sold (COGS) incl. D&A 938,736 841,642 782,443 712,463

COGS excluding D&A 574,418 510,735 488,399 441,519

Depreciation & Amortization Expense 364,318 330,907 294,044 270,944

Depreciation 285,313 255,982 225,284 205,106

Amortization of Intangibles 79,005 74,925 68,760 65,838

COGS Growth 11.54% 7.57% 9.82% 4.36%

Gross Income 452,712 323,827 223,715 134,302

Gross Income Growth 39.80% 44.75% 66.58% 7.35%

Gross Profit Margin 32.54% - - -

SG&A Expense 103,512 77,730 62,865 61,597

Other SG&A 103,512 77,730 62,865 61,597

60
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

SGA Growth 33.17% 23.65% 2.06% -22.29%

Other Operating Expense - 3,216 32,513 -

EBIT 349,200 242,881 128,337 -

Unusual Expense 4,224 (4,685) 126,632 400,892

Non Operating Income/Expense (22,890) 11,035 2,058 (582)

Non-Operating Interest Income 3,080 - - -

Interest Expense 168,511 158,002 147,717 125,908

Interest Expense Growth 6.65% 6.96% 17.32% 25.60%

Gross Interest Expense 168,511 158,002 147,717 125,908

Pretax Income 158,086 100,599 (143,954) (454,677)

Pretax Income Growth 57.14% 169.88% 68.34% -2078.20%

Pretax Margin 11.36% - - -

Income Tax 42,733 41,779 89,325 (125,124)

61
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Income Tax - Current Domestic 34,831 30,331 20,584 17,932

Income Tax - Deferred Domestic 7,902 11,448 68,741 (143,056)

Equity in Affiliates 7,521 24,232 (928) (6,627)

Consolidated Net Income 122,874 83,052 (234,207) (336,180)

Minority Interest Expense 39,415 40,503 27,195 15,190

Net Income 83,459 42,549 (261,402) (351,370)

Net Income Growth 96.15% 116.28% 25.60% -8680.46%

Net Margin 6.00% - - -

Extraordinaries & Discontinued

- - 110,567 29,538
Operations

Extra Items & Gain/Loss Sale Of

- - 94,496 -
Assets

Discontinued Operations - - 16,071 29,538

Net Income After Extraordinaries 83,459 42,549 (371,969) (380,908)

62
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Net Income Available to Common 83,459 42,549 (245,331) (321,832)

EPS (Basic) 14.80 7.67 (27.14) (62.24)

EPS (Basic) Growth 92.86% 128.26% 56.39% -7326.23%

Basic Shares Outstanding 5,641 5,546 5,557 5,171

EPS (Diluted) 14.57 7.63 (27.14) (62.24)

EPS (Diluted) Growth 91.05% 128.09% 56.39% -7329.97%

Diluted Shares Outstanding 5,728 5,580 5,557 5,171

EBITDA 713,518 573,788 422,381 343,649

EBITDA Growth 24.35% 35.85% 22.91% 32.44%

EBITDA Margin 51.28% - - -

EBIT 349,200 242,881 128,337 -

Interpretation : Trends in sales growth, cost patterns from 2020-2023 shows overall profitability
of the company.

63
 i

Table 4.2.2 This is a comparative analysis of Income Statements of 4 years data of

Vodafone Idea ltd.

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Sales/Revenue 421,597 385,085 419,476 449,346

Sales Growth 9.48% -8.20% -6.65% 21.36%

Cost of Goods Sold (COGS) incl. D&A 472,542 448,627 470,511 523,648

COGS excluding D&A 242,045 212,784 234,133 280,096

Depreciation & Amortization Expense 230,497 235,843 236,378 243,552

Depreciation 142,584 146,569 145,006 152,068

Amortization of Intangibles 87,913 89,274 91,372 91,484

COGS Growth 5.33% -4.65% -10.15% 15.03%

Gross Income (50,945) (63,542) (51,035) (74,302)

Gross Income Growth 19.82% -24.51% 31.31% 12.53%

Gross Profit Margin -12.08% - - -

SG&A Expense 10,819 10,296 12,240 16,636

64
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Other SG&A 10,819 10,296 12,240 16,636

SGA Growth 5.08% -15.88% -26.42% -14.52%

Other Operating Expense 1,376 2,386 3,683 3,659

EBIT (63,140) (76,224) (66,958) (94,597)

Unusual Expense 6,321 4,708 221,689 379,106

Non-Operating Income/Expense (2,817) 462 23,232 (8,072)

Non-Operating Interest Income 2,471 877 1,232 7,375

Equity in Affiliates (Pretax) - - - -

Interest Expense 223,174 202,760 180,665 147,123

Interest Expense Growth 10.07% 12.23% 22.80% 59.55%

Gross Interest Expense 223,174 202,760 180,665 147,123

Interest Capitalized - - - -

Pretax Income (292,981) (282,353) (444,848) (621,523)

65
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Pretax Income Growth -3.76% 36.53% 28.43% -236.94%

Pretax Margin -69.49% - - -

Income Tax 35 113 (203) 120,811

Income Tax - Current Domestic 115 173 (180) 4

Income Tax - Deferred Domestic (80) (60) (23) 120,807

Equity in Affiliates 5 12 2,314 3,553

Other After Tax Income (Expense) - - - (268)

Consolidated Net Income (293,011) (282,454) (442,331) (739,049)

Net Income (293,011) (282,454) (442,331) (739,049)

Net Income Growth -3.74% 36.14% 40.15% -405.21%

Net Margin -69.50% - - -

Net Income After Extraordinaries (293,011) (282,454) (442,331) (739,049)

Net Income Available to Common (293,011) (282,454) (442,331) (739,049)

66
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

EPS (Basic) (8.43) (9.83) (15.40) (27.26)

EPS (Basic) Growth 14.20% 36.19% 43.50% -28.81%

Basic Shares Outstanding 34,754 28,745 28,735 27,115

EPS (Diluted) (8.43) (9.83) (15.39) (27.26)

EPS (Diluted) Growth 14.20% 36.16% 43.52% -28.81%

Diluted Shares Outstanding 34,754 28,745 28,735 27,115

EBITDA 167,357 159,619 169,420 148,955

EBITDA Growth 4.85% -5.79% 13.74% 267.34%

EBITDA Margin 39.70% - - -

EBIT (63,140) (76,224) (66,958) (94,597)

Interpretation : Trends in sales growth, cost patterns from year 2020-2023 shows overall loss of
the company .

67
 i

4.2.B Balance Sheets

Balance sheet analysis is a method of evaluating and interpreting a company's financial

position at a specific point in time by examining its balance sheet. The balance sheet is one of the
three primary financial statements, alongside the income statement and cash flow statement. It
provides a snapshot of a company's assets, liabilities, and shareholders' equity at a particular date.

Here are the key components of a balance sheet:

These are what a company owns. They can be current assets (like cash, accounts receivable,
and inventory) or non-current assets (like property, plant, equipment, and intangible
assets).
These are what a company owes to others. Similar to assets, liabilities can be current (such
as accounts payable and short-term debt) or non-current (like long-term debt).
This represents the residual interest in the assets of the entity after deducting liabilities. It
includes items such as common stock, retained earnings, and additional paid-in capital.

Balance sheet analysis involves several key activities:

➢ Assessing a company's ability to meet its short-term obligations. This is often done by
comparing current assets to current liabilities.
➢ Evaluating a company's ability to meet its long-term obligations. This involves looking at
the proportion of debt to equity.
➢ Examining how efficiently a company is using its assets to generate revenue.
➢ Understanding the mix of debt and equity financing employed by the company.
➢ Analyzing the composition and value of a company's investments.
➢ Assessing the company's ability to manage its working capital, which is the difference
between current assets and current liabilities.
➢ Balance sheet analysis is crucial for investors, creditors, and management to make
informed decisions about a company's financial health, risk, and overall performance. By
understanding the composition of assets, liabilities, and equity, stakeholders can gain
insights into a company's stability, leverage, and potential for growth.

68
 i

Table 4.2.3 This is a comparative Balance Sheets of 4 years data of Bharti Airtel ltd .

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Cash & Short-Term Investments 181,231 143,557 175,442 296,606

Cash Only 124,591 112,624 115,816 158,774

Cash & Short-Term Investments Growth 26.24% -18.17% -40.85% 133.78%

Cash & ST Investments / Total Assets 4.06% 3.95% 5.07% 8.22%

Total Accounts Receivable 142,771 141,593 163,826 201,240

Accounts Receivables, Net 60,738 59,613 51,279 65,279

Accounts Receivables, Gross 110,835 104,569 94,803 111,207

Bad Debt/Doubtful Accounts (50,097) (44,956) (43,524) (45,928)

Other Receivables 82,033 81,980 112,547 135,961

Accounts Receivable Growth 0.83% -13.57% -18.59% 21.02%

Accounts Receivable Turnover 9.75 8.23 6.14 4.21

Inventories 6,080 9,464 7,404 8,294

Progress Payments & Other - - 7,404 8,294

69
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Other Current Assets 244,931 225,665 200,857 260,292

Prepaid Expenses 11,758 10,487 9,088 9,635

Miscellaneous Current Assets 233,173 215,178 191,769 250,657

Total Current Assets 575,013 520,279 547,529 766,432

Net Property, Plant & Equipment 1,614,861 1,271,941 1,254,206 1,176,801

Property, Plant & Equipment - Gross 3,117,780 2,620,031 2,457,572 2,325,560

Buildings 18,152 13,767 10,731 10,921

Land & Improvements 8,238 5,798 5,843 5,843

Machinery & Equipment 2,284,891 2,105,395 1,926,716 1,893,843

Construction in Progress 116,154 43,930 108,043 40,179

Computer Software and Equipment 107,398 99,043 91,616 89,935

Transportation Equipment 5,942 1,892 2,047 2,173

Other Property, Plant & Equipment 30,539 27,920 24,459 23,617

70
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Accumulated Depreciation 1,502,919 1,348,090 1,203,366 1,148,759

Buildings 6,177 5,413 4,799 4,335

Land & Improvements - - - -

Machinery & Equipment 1,376,394 1,230,809 1,094,375 1,044,080

Computer Software and Equipment 95,630 89,290 83,078 80,226

Transportation Equipment 1,791 1,734 1,916 1,979

Other Property, Plant & Equipment 22,927 20,844 19,198 18,139

Total Investments and Advances 283,484 285,319 235,240 117,217

LT Investment - Affiliate Companies 281,838 284,268 234,346 96,808

Other Long-Term Investments 1,646 1,051 894 20,409

Long-Term Note Receivable 3,890 3,073 3,055 -

Intangible Assets 1,659,192 1,229,983 1,102,233 1,158,784

Net Goodwill 337,741 338,313 329,064 346,192

71
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Net Other Intangibles 1,321,451 891,670 773,169 812,592

Other Assets 140,373 126,715 117,151 118,396

Deferred Charges 32,048 26,899 24,316 26,063

Tangible Other Assets 108,325 99,816 92,835 92,333

Total Assets 4,466,332 3,636,560 3,460,278 3,607,790

Assets - Total - Growth 22.82% 5.09% -4.09% 31.12%

Asset Turnover 0.34 - - -

Return On Average Assets 2.06% - - -

Interpretation : By examining changes in current assets, current liabilities, and long-term assets
and liabilities from year 2020-2023 we can see the profitability of the company .

72
 i

Table 4.2.4 This is a comparative Balance sheet analysis of 4 years data of Vodafone Idea ltd.

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Cash & Short-Term Investments 8,554 34,966 22,165 31,178

Cash Only 6,392 30,635 7,251 8,222

Cash & Short-Term Investments Growth -75.54% 57.75% -28.91% -59.51%

Cash & ST Investments / Total Assets 0.37% 1.80% 1.09% 1.37%

Total Accounts Receivable 107,023 118,826 110,814 110,761

Accounts Receivables, Net 21,640 24,439 25,070 30,943

Accounts Receivables, Gross 32,392 24,608 36,783 43,792

Bad Debt/Doubtful Accounts (10,752) (169) (11,713) (12,849)

Other Receivables 85,383 94,387 85,744 79,818

Accounts Receivable Growth -9.93% 7.23% 0.05% 9.84%

Accounts Receivable Turnover 3.94 3.24 3.79 4.06

Inventories 163 23 6 25

73
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Finished Goods 163 23 6 25

Progress Payments & Other - - - -

Other Current Assets 2,392 3,029 4,495 24,897

Prepaid Expenses 1,295 1,804 3,269 2,781

Miscellaneous Current Assets 1,097 1,225 1,226 22,116

Total Current Assets 118,132 156,844 137,480 166,861

Net Property, Plant & Equipment 601,275 539,655 587,551 673,648

Property, Plant & Equipment - Gross 1,555,790 1,364,363 1,280,311 1,258,624

Buildings 5,117 5,120 5,120 5,121

Land & Improvements 189 189 189 189

Machinery & Equipment 1,006,912 987,684 955,912 947,770

Construction in Progress 3,064 3,328 11,847 10,535

Leases 535,686 363,133 301,904 288,306

74
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Transportation Equipment 711 804 1,014 1,388

Other Property, Plant & Equipment 4,111 4,105 4,325 5,315

Accumulated Depreciation 954,515 824,708 692,760 584,976

Buildings 1,319 1,123 926 729

Machinery & Equipment 695,657 624,864 552,693 494,222

Transportation Equipment 708 767 868 1,015

Other Property, Plant & Equipment 3,848 3,845 3,855 4,443

Total Investments and Advances 1,249 918 4,704 18,673

LT Investment - Affiliate Companies 58 53 41 15,244

Other Long-Term Investments 1,191 865 4,663 3,429

Long-Term Note Receivable 67 9 348 1,226

Intangible Assets 1,140,102 1,032,263 1,099,263 1,195,558

Net Goodwill - - - -

75
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Net Other Intangibles 1,140,102 1,032,263 1,099,263 1,195,558

Other Assets 211,467 210,542 205,437 213,210

Deferred Charges 29,386 22,481 8,451 840

Tangible Other Assets 182,081 188,061 196,986 212,370

Total Assets 2,300,400 1,940,291 2,034,806 2,269,196

Assets - Total - Growth 18.56% -4.64% -10.33% -1.21%

Asset Turnover 0.20 - - -

Return On Average Assets -13.82% - - -

Interpretation : By examining changes in current assets, current liabilities, and long-term assets
and liabilities from year 2020-2023 we can see the company is bearing loss.

76
 i

4.2.C Cash Flow Statement Analysis

Cash flow statement analysis is a financial analysis technique that involves the
examination and interpretation of a company's cash flow statement. The cash flow statement is one
of the three main financial statements, alongside the income statement and balance sheet. It
provides insights into how cash is generated and used by a business over a specific period of time.

The cash flow statement is divided into three main sections:

• This section represents the cash generated or used in the core business operations of the
company. It includes cash transactions related to sales, purchases of inventory, operating
expenses, and taxes.
• This section outlines the cash flow from the purchase and sale of long-term assets, such as
property, equipment, and investments. It reflects the company's investments in its future
growth.
• This section includes cash transactions with the company's owners and creditors. It
includes activities such as issuing or repurchasing stock, paying dividends, and taking on
or repaying debt.

Here are some key points to consider when analyzing a cash flow statement:

➢ Positive operating cash flow is generally a good sign, as it indicates that the company is
generating enough cash from its core operations to sustain and grow the business.
➢ Negative cash flow in investing activities may indicate heavy investments in long-term
assets. This could be a positive sign if the investments are expected to generate future
returns.
➢ Negative financing cash flow may suggest that the company is paying off debt or buying
back stock, which can be positive. On the other hand, positive financing cash flow may
indicate the company is raising capital, possibly through issuing stock or taking on debt.
➢ The overall net cash flow (sum of operating, investing, and financing cash flows) provides
a comprehensive view of the company's cash position.

77
 i

➢ Analyzing cash flow over multiple periods helps identify trends. Consistent
positive cash flow is generally a positive sign, while inconsistent or negative
cash flow may warrant further investigation.

Cash flow statement analysis is crucial for investors, creditors, and management to assess a
company's liquidity, financial flexibility, and ability to meet its obligations. It complements other
financial statements and ratios, providing a more holistic view of a company's financial health.

Table 4.2.5 This is comparative Cashflow Statement analysis of four years data of Bharti Airtel
ltd .

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Net Income before Extraordinaries 165,607 124,831 (31,184) (428,465)

Net Income Growth 32.66% 500.30% 92.72% -2374.10%

Depreciation, Depletion & Amortization 364,318 330,907 297,092 276,896

Depreciation and Depletion 285,313 255,982 - -

Amortization of Intangible Assets 79,005 74,925 - -

Other Funds 105,048 (18,636) 141,786 393,575

Funds from Operations 634,973 437,102 407,694 242,006

Changes in Working Capital (31,120) (14,472) 30,432 (165,964)

Receivables (5,583) (7,131) (3,954) (8,925)

78
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Inventories (1,157) (1,181) (1,139) (522)

Accounts Payable 12,671 (4,877) 6,902 (2,477)

Other Assets/Liabilities (37,051) (1,283) 28,623 (154,040)

Net Operating Cash Flow 603,853 422,630 438,126 76,042

Net Operating Cash Flow Growth 42.88% -3.54% 476.16% -46.00%

Net Operating Cash Flow / Sales 43.40% 36.26% 43.54% 8.98%

Interpretation: After Examining the changes in operating, investing, and financing cash flows of
years 2020-2023 we can understand that Bharti Airtel is capable to generate cash and sources cash
efficiently .

79
 i

Table 4.2.6 This is a comparative Cashflow analysis 0h past 4 years of Vodafone Idea
ltd .

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Net Income before Extraordinaries (292,976) (282,341) (442,534) (617,970)

Net Income Growth -3.77% 36.20% 28.39% -240.00%

Depreciation, Depletion & Amortization 230,497 235,843 236,378 243,552

Depreciation and Depletion 142,584 146,569 145,006 152,068

Amortization of Intangible Assets 87,913 89,274 91,372 91,484

Other Funds 224,892 196,364 351,654 392,735

Funds from Operations 162,413 149,866 145,498 18,317

Changes in Working Capital 6,275 (3,407) (14,445) (92,455)

Receivables 1,847 (383) 3,136 (807)

Inventories (140) (17) 19 17

Accounts Payable (2,477) (3,432) 5,522 (11,012)

Other Assets/Liabilities 7,045 425 (23,122) (80,653)

Net Operating Cash Flow 168,688 146,459 131,053 (74,138)

80
 i

Fiscal year is April-March. All values INR

Millions. 2023 2022 2021 2020

Net Operating Cash Flow Growth 15.18% 11.76% 276.77% -1315.18%

Net Operating Cash Flow / Sales 40.01% 38.03% 31.24% -16.50%

Interpretation: After Examining the changes in operating, investing, and financing cash flows of
years 2020-2023 we can understand that Vodafone Idea is not much capable to generate cash and
does not uses sources cash efficiently .

(All the datas used in the overall report are taken from the secondary sources)

81
 i

CHAPTER: V

82
 i

5.1 Major Findings

The research project presents key findings based on data collected from the annual reports of Bharti
Airtel Limited and Vodafone Idea Limited, and several conclusions are drawn based on the
findings using data representation, which is then analyzed and interpreted.

1. The average current ratio of Bharti Airtel Limited has an 0.55, while Vodafone Idea
Limited has an average current ratio of 0.29. Hence, the current ratio of Bharti Airtel
limited is better than Vodafone Idea Limited.
2. The average debt to equity ratio of Bharti Airtel Limited has 1.28 , while Vodafone Idea
Limited has an average current ratio of 0.17 . Hence, the Debt-to-Equity Ratio of Bharti
Airtel limited is better than Vodafone Idea Limited.
3. The Average Proprietary Ratio for Vodafone Idea is -0.8 and for Bharti Airtel is 0.27.
Therefore, Proprietary Ratio of Bharti Airtel is higher than Vodafone Idea ltd which shows
company stability for Bharti Airtel .
4. The average operating profit ratio of Bharti Airtel Limited 49.99 , while Vodafone Idea
Limited has an average current ratio of 37.48. Hence, the Operating Profit Ratio of Bharti
Airtel limited is better than Vodafone Idea Limited.
5. The average gross profit ratio of Bharti Airtel Limited 60.31 , while Vodafone Idea Limited
has an average current ratio of 43.35. Hence, the Gross Profit Ratio of Bharti Airtel limited
is better than Vodafone Idea Limited.
6. The average net profit ratio Bharti Airtel Limited of 4.62 , while Vodafone Idea Limited
has continuous average loss of -74.09 . Hence, the Net Profit Ratio of Bharti Airtel limited
is better than Vodafone Idea Limited.
7. The average fixed assts turnover ratio of Bharti Airtel Limited 10.43 , while Vodafone Idea
Limited has an average fixed assets turnover ratio of 10.11. Hence, the fixed assets turnover
ratio of Bharti Airtel limited is better than Vodafone Idea Limited.
8. The Average Return on Assets Ratio for Vodafone Idea is -20.85 and for Bharti Airtel is -
3.16 . Therefore, Return on Assets Ratio of Bharti Airtel is greater than Vodafone Idea ltd.

83
 i

9. The Average Inventory Turnover Ratio for Vodafone Idea is 8117.68 and for
Bharti Airtel is 193.6. Therefore, Inventory Turnover Ratio of Bharti Airtel is
greater than Vodafone Idea ltd which is a positive change for Bharti Airtel .
10. The Average ROI for Vodafone Idea is -3.88 and for Bharti Airtel is 5.7. Therefore, Return
on Investment of Bharti Airtel is greater than Vodafone Idea ltd which is a positive change
for Bharti Airtel
11. Trends in sales growth, cost patterns from 2020-2023 shows overall profitability of the
company.
12. Trends in sales growth, cost patterns from year 2020-2023 shows overall loss of the
company .
13. By examining changes in current assets, current liabilities, and long-term assets and
liabilities from year 2020-2023 we can see the profitability of the company .
14. By examining changes in current assets, current liabilities, and long-term assets and
liabilities from year 2020-2023 we can see the company is bearing loss.
15. After Examining the changes in operating, investing, and financing cash flows of years
2020-2023 we can understand that Bharti Airtel is capable to generate cash and sources
cash efficiently .
16. After Examining the changes in operating, investing, and financing cash flows of years
2020-2023 we can understand that Vodafone Idea is not much capable to generate cash and
does not uses sources cash efficiently .

84
 i

5.2 Suggestions

• As compared to Bharti Airtel Limited, Vodafone Idea Limited has a higher debt equity
ratio. Asa result, Vodafone Idea Limited can keep a close hold on its debt, otherwise more
risk will be there and it will hamper the growth of the company.
• The average net profit of both the companies was not great in all the years of data analysis
taken up in this research. This might be due to the competition and impact of covid-19.
Therefore, companies really need to work hard to cover up the losses and to maintain the
goodwill in the market.
• In order to increase compatibility, proper networking should be undertaken.
• In order to grow their customer base, businesses can provide more discounts and exclusive
offers/schemes to their customers, as well as maintain a positive relationship with them.
• In order to understand the customer's viewpoint on the service, to address their problems,
and to enhance the services, timely feedback should be taken up in the form of a survey or
in some other way.

85
 i

5.3 CONCLUSIONS

The telecommunications sector is vital for each country's development and progress. In our day-
to-day lives, communication is extremely critical. The only way to connect with each other during
the lockdown, when no one was allowed to leave their house, was via cell phones. The aim of this
study is to compare the financial performance of Bharti Airtel Limited and Vodafone Idea Limited.
In this Research Project, data of various years was gathered from the company's annual reports.
To compare and analyze, various ratios have been calculated like liquidity, profitability, solvency
and Activity (or Turnover or efficiency) Ratio. Therefore, it was concluded that the overall
performance of Bharti Airtel Limited was better than Vodafone Idea Limited.

86
 i

CHAPTER VI

87
 i

REFERENCES

➢ Carlsson Jeanette and Arias Salvador. (2004, February). “Transforming Wireline

Telecom”.
➢ Marine Souheil and Blanchard Jean-Marie . (2005). Retrieved from “Bridging the Digital
Divide” .
➢ Payal Malik and Divakar Goswami . (2007). “Research for Improving ICT Governance in
Asia Pacific".
➢ Chaitra and Dr. T. Rajendra Prasad. (2017, July). “A Study on Financial performance of
Telecom Sector in India”.
❖ Retrieved from: http://www.shanlaxjournals.in/pdf/ASH/V5N1/ASH_V5_N1_008.pdf
➢ Adebayo, A. A. (2016, April). "A review of the contributions of telecommunications to the
economic growth of Nigeria".
❖ Retrieved from : https://scholar.google.com/citations?user=cgSEvMAAAAAJ&hl=en
➢ Bedi, A. (2018, August). “Post Acquisition Performance of Indian Telecom Companies:
An Empirical Study”.
❖ Retrieved from : http://www.pbr.co.in/2018/2018_month/Aug/6.pdf
➢ Braff Adam, Passmore William, J, and Simpson Michael. (2003). “Going the distance with
telecom customers".
❖ Retrievedfrom:https://www.businessstandard.com/company/vodafoneidea_23040/inform
ation/company
➢ Devaki, D. V. (2020, January). "Analysis of Financial Pattern of Selected
Telecommunication Companies in India".
❖ Retrieved from: https://www.worldwidejournals.com/indian-journal-of-applied-research-
(IJAR)/article/analysis-of-financial-pattern-of-selectedtelecommunication-companies-in-
india/MTk0ODg=/?is=1&b1=13&k=4
❖ Dr. Marimuthu, KN, Dr. Syed Azhar and Dr. B. Ramesh. (2019, November). “Financial Health of
Select Telecom companies in India".

Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3513993

88
 i

➢ Dr. Sanjay Pandey, Vijay Verma and Vikas Jain. (2013, April). “Measuring
Financial Soundness of Indian Telecom Companies – A Comparative
Analysis”.
❖ Retrieved from: https://www.theijm.com/april-1
➢ 3 E Pedersen and Methlie . (2002). "A taxonomy of intermediately integration strategies in
online markets". IBEF. (2021, March).
❖ Retrieved from: https://www.ibef.org/industry/telecommunications.aspx
➢ Kostas Karamanis , Apostolos D. Zaridis, Athina Rontogianni and Dimosthenis Mousiolis.
(2015, February). "Public or Private Telecoms? The Effects of Ownership on Greek
Telecommunications Market".
❖ Retrieved from:
https://www.researchgate.net/publication/268278887_Public_or_Private_
Telecoms_The_Effects_of_Ownership_on_Greek_Telecommunications_ Market
➢ Marine Souheil and Blanchard Jean-Marie. (2005). "Bridging the Digital Divide".
➢ Megha Gaste and Prof. Vanishri R. Hundekar. (2017, Nov). "Financial Performance of
Telecom Companies".
➢ Mohmad Mushtaq Khan and Dr. Syed Khaja Safiuddin. (2016, September). “Liquidity &
Profitability Performance Analysis of Selected Telecom Companies”.
❖ Retrieved from: http://publications.anveshanaindia.com/wp-
➢ Accounting Ratios.
❖ Retrieved from : https://ncert.nic.in/ncerts/l/leac205.pdf
➢ PTI. (2020, July). "Telecom industry loses 82 lakh subscribers in April. Pressure to
continue".
➢ Economic Times. R., A. T. (2020, August). "Financial Indicators of Selected Service-
Provider Companies of Telecommunication Sector in India: An Empirical Study".
❖ Retrieved from: https://bcsdjournals.com/index.php/jareas/article/view/16
➢ Rajat Kathuria and Mansi Kedia. (2019, June). "A study of the financial health of the
telecom sector".
❖ Retrieved from: https://www.econstor.eu/bitstream/10419/203714/1/1669527867.pdf
➢ Snyder, D. A. (2006, December). "Technology transfer: Lessons from experience -The
telecommunications process".

89
 i

➢ Stehman, O. (1995). “Network Competition for European

Telecommunication".
➢ Wikipedia. (2021, April).
❖ Retrieved from :https://en.wikipedia.org/wiki/Bharti_Airtel

Books Referred: -

• Maheshwari, S. N. (2002). Financial management: Principles and practice for M.Com.,

MBA, Ca and ICWA examination. Sultan Chand.

• Pandey I M, Financial Management 9th Edition Vikas Publications House Pvt Ltd.

• Kothari C R- Research Methodology: Method and Techniques, New age international

publishers, 2nd revised edition, New Delhi,2008.

• K.G.C Nair “Management Accounting”, Chand books Publications,1st edition,

Trivandrum,2008.

• Gupta B L, Management of Liquidity and Profitability, Arihant Publishing House,

Jaipur.

WEBSITES USED :

https://www.google.com/search?q=comparative+income+statements+of+bharti+airtel+of+las
t+4+years&rlz=1C1FHFK_enIN997IN997&sourceid=chrome&ie=UTF-8

https://www.wsj.com/market-data/quotes/IN/XBOM/532454/financials/annual/income-
statement

https://www.wsj.com/market-data/quotes/IN/XBOM/532454/financials/annual/balance-sheet

https://www.wsj.com/market-data/quotes/IN/XBOM/532454/financials/annual/cash-flow

https://www.moneycontrol.com/financials/bhartiairtel/balance-sheetVI/BA08

https://www.google.com/search?q=comparative+balance+sheets+of+bharti+airtel+of+last+4
+years&rlz=1C1FHFK_enIN997IN997&sourceid=chrome&ie=UTF-8

https://www.wsj.com/market-data/quotes/IN/IDEA/financials/annual/income-statement

90
 i

https://www.wsj.com/market-data/quotes/IN/IDEA/financials/annual/balance-
sheet

https://www.gurufocus.com/term/ROIC/NSE:IDEA/ROIC-/Vodafone-Idea

https://www.topstockresearch.com/rt/Financial/IDEA/ReturnOnInvestedCapital

https://in.investing.com/equities/bharti-airtel-income-statement

https://in.investing.com/equities/bharti-airtel-income-statement

https://finbox.com/BSE:532454/explorer/roic/

https://in.investing.com/equities/bharti-airtel-ratios

https://www.moneycontrol.com/financials/vodafoneidealimited/balance-sheetVI/IC8

https://www.moneycontrol.com/financials/bhartiairtel/balance-sheetVI/BA08

https://www.screener.in/company/BHARTIARTL/consolidated/

https://www.moneycontrol.com/financials/bhartiairtel/profit-lossVI/BA08

https://www.topstockresearch.com/rt/Financial/BHARTIARTL/InventoryTurnoverRatio#:~:t
ext=Inventory%20Turnover%20Ratio%20with%20value,246.10%20in%20last%20five%20y
ears.

91