Bhart Airtel Reports Q1

NEW DELHI -- Bharti Airtel Limited (“Bharti Airtel” or “the Company”) today announced itsaudited consolidated IFRS results for the first quarter ended June 30, 2010 which includes the results of the newlyacquired African operations for 23 days of the quarter, effective June 8, 2010. The Company has adopted IFRS(International Financial Reporting Standards) for its consolidated results effective April 1, 2010; consequently, theresults of Indus Towers Ltd have been proportionately consolidated. Previous period figures have been re-stated tofacilitate comparison. Bharti Airtel is one of the first companies in India to publish consolidated IFRS resultsas permitted by Clause 41(I)(g) of the Listing Agreement vide SEBI Circular dated April 5, 2010.

The consolidated total revenues (including Airtel Africa for 23 days, w.e.f June 8, 2010) for the quarter ended June30, 2010 of USD 2,625 million grew by 17.4% Y-o-Y. India & South Asia total revenues stood at USD 2,419 million,a growth of 8.2% Y-o-Y. On a sequential basis, the Mobile business in India & South Asia grew by USD 109 millionover Q4 FY10. Mobile minutes in India grew by 17.6 billion (over Q4 FY10) to 190.4 billion.

Consolidated underlying EBITDA of USD 968 million grew by 5.0% Y-o-Y. Underlying EBITDA margins continuedto be robust at 36.9% after absorbing a conservative provision of USD 22 million for the proposed spectrum costhike in India; though this has been stayed by the TDSAT.

The quarter witnessed the adverse impact of the strengthening of the US Dollar (USD) against the Indian Rupeeand several African currencies. As a result, derivatives and exchange fluctuations led to a loss of USD 46 million inQ1 FY11 (Previous year: gain of USD 60 million). Consequently, net income dropped by 32.0% Y-o-Y to USD 361million. During the quarter, the Company acquired the African operations of Zain for an enterprise value of USD 10.7billion. The 3G licences in 13 circles and BWA licences in 4 circles in India were acquired at a total cost of USD3,350 million. Capex spend during the quarter was restricted to USD 394 million due to delays in securityclearances for equipment imports. The Consolidated Free Cash Flow in Q1 FY11 was an all-time high of USD 786million. The Net Debt - Equity ratio stood at 1.38, and the Net Debt – EBITDA ratio at 2.87.

In a statement, Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said “The firstquarter witnessed the successful completion of the acquisition of Zain’s mobile operations in 15 African countries.We also won valuable 3G and BWA licenses in India, which will transform Airtel into a lifestyle enabler. Ourbusiness in India and South Asia got off to a solid start with robust revenue growth and healthy margins. Thisreaffirms our conviction that leaders emerge stronger in a hyper competitive market.”

Bharti Airtel Ltd. (Mumbai: BHARTIARTL)