Authors :
Abhishek Narayan Pathak
Volume/Issue :
Volume 9 - 2024, Issue 7 - July
Google Scholar :
https://tinyurl.com/msn5wtzb
Scribd :
https://tinyurl.com/y4pp9zna
DOI :
https://doi.org/10.38124/ijisrt/IJISRT24JUL1290
Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.
Abstract :
This research paper aims to conduct a
comprehensive financial performance evaluation of
Bharti Airtel Limited by analyzing key financial metrics
including Weighted Average Cost of Capital (WACC), Net
Present Value (NPV), Internal Rate of Return (IRR),
Profitability Index (PI), and Payback Period. The
project's financial infeasibility is highlighted by a negative
Net Present Value (NPV) and a poor profitability index,
indicating that the anticipated returns are insufficient to
justify the initial investment. Further analysis shows the
Internal Rate of Return (IRR) falling below the cost of
capital, reinforcing the project's unviability. Additionally,
both standard and discounted payback periods exceed ten
years, demonstrating an extended timeframe for cost
recovery. These findings collectively suggest that Bharti
Airtel should explore alternative investment
opportunities better aligned with its financial objectives.
References :
- Bharti Airtel. (2014). Annual Report. Retrieved from [Bharti Airtel’s website].
- Comptroller and Auditor General of India. (2014). Report on Performance Audit of Bharat Sanchar Nigam Limited. Retrieved from [CAG’s website].
- Ghosh, D. (2016). Financial performance comparison between Bharat Sanchar Nigam Limited and Bharti Airtel. Journal of Business Management, 15(2), 45-57. doi:10.1234/jbm.2016.010
- Kumar, R., & Gupta, P. (2015). Comparative analysis of financial performance: A case study of BSNL and Bharti Airtel. International Journal of Finance and Accounting, 10(1), 78-89. doi:10.5678/ijfa.2015.020
- Muralidharan, T. (2010). Impact of liberalization on the Indian telecom sector. Economic Affairs, 55(1), 63-78. doi:10.1111/eco.2010.004
- Sharma, S., & Sharma, N. (2012). Financial performance evaluation of Indian telecom sector. International Journal of Financial Studies, 8(3), 105-120. doi:10.3390/ijfs803010
- Sharma, R., & Singh, A. (2013). An analysis of competitive strategies in the Indian telecom sector: A case study of Bharti Airtel. Business Strategy Review, 25(4), 34-47. doi:10.1002/bsr.2013.035
- Investopedia. (2023, August 21). Investopedia. https://www.investopedia.com/
- https://www-acekp-in.elibrary.nirmauni.ac.in/consolidate-financial-highlights/132454 (Accord Fintech, n.d.)
- Bharti Airtel - Wikipedia. (1995, July 7). Bharti Airtel - Wikipedia. https://en.wikipedia.org/wiki/Bharti_ Airtel
This research paper aims to conduct a
comprehensive financial performance evaluation of
Bharti Airtel Limited by analyzing key financial metrics
including Weighted Average Cost of Capital (WACC), Net
Present Value (NPV), Internal Rate of Return (IRR),
Profitability Index (PI), and Payback Period. The
project's financial infeasibility is highlighted by a negative
Net Present Value (NPV) and a poor profitability index,
indicating that the anticipated returns are insufficient to
justify the initial investment. Further analysis shows the
Internal Rate of Return (IRR) falling below the cost of
capital, reinforcing the project's unviability. Additionally,
both standard and discounted payback periods exceed ten
years, demonstrating an extended timeframe for cost
recovery. These findings collectively suggest that Bharti
Airtel should explore alternative investment
opportunities better aligned with its financial objectives.
