CMP Rs426, Target Rs461, Upside 8.2%
± Q1
revenues largely in line; EBIDTA and pre-FX PAT lower than expectation;
reported PAT impacted by Rs1.8bn of derivative & FX fluctuations
± India
& S Asia revs in line at +4.2% qoq driven by +3.3% increase in
wireless revenues; RPM declines 0.7% vs 1% rise for Idea
± Wireless EBIDTA margin halts multi-quarter decline, up ~60bps qoq; enterprise EBIDTA stumbles again after revival seen in Q4
± Africa US$ revenue growth at +6% qoq above our estimate driven by robust 9.5% traffic growth; MOU/sub also up 5% qoq
± Africa EBIDTA margin disappoint; EBIDTA stays flat qoq, impacted by higher network opex; Africa capex at US$420mn
± Expect
stock to consolidate after a stellar ~30% outperformance vs Sensex;
remain +ve on business but lower our rating as valuation do not permit
>10% upside. Rate MP with 9-mth TP Rs461 
