ICICI Securities: Bharti Infratel’s Gross Tenancy Additions Impacted Due To Lockdown 
A telecom tower stands on top of a building. (Photographer: Susana Gonzalez/Bloomberg)

ICICI Securities: Bharti Infratel’s Gross Tenancy Additions Impacted Due To Lockdown 

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ICICI Securities Report

Bharti Infratel Ltd.’s net tenancy dipped by 366 in Q1 FY21; gross tenancy adds decelerated to 862 (impacted from lockdown), but churn also fell to 1,228.

Fall in churn rate increases visibility of net tenancy growth as gross add recovers; however, we see lower incremental profit/return on capital employed due to rise in single tenant towers.

Uncertainty on adjusted gross revenue resolution continues, so does the risk of Vodafone Idea Ltd. remaining a going concern. Our stress test shows, if VIL shuts shop, Bharti Infratel’s tenancy, revenue and Ebitda (recurring cash) would decline by 36%, 32% and 48% versus our base case estimates.

Click on the attachment to read the full report:

ICICI Securities Bharti Infratel Q1FY21 Result Review.pdf

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