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Comparison of capital structure of Bharti AIRTEL and IDEA cellular

We have taken the capital structure of 4 years (2008-2012) of both the telecom companies. The total share capital of Airtel has been stable for the last four years. It has been Rs. 1898 crores throughout. The total share capital of IDEA cellular has rose from Rs. 2635 Crores in 2008 to Rs. 3308 crores in 2012. This indicates that share capital of IDEA cellular is more than Bharti Airtel. The reserves of Airtel have grown tremendously from Rs. 18238 crores to Rs. 47,528. The reserves have increased on higher rate in comparison with IDEA where the reserves have been mere Rs. 906 crores and havent seen any remarkable growth. Needless to say there isnt much competition between Airtel and IDEA. Airtel has been a clear winner in the telecom industry when we compare its capital structure. The networth of airtel was Rs. 20,241 crores in 2008 which increased steadily to Rs. 49,429 crores in 2012. The networth of IDEA was 3,546 crores in 2008 which increased to 12,934 crores in 2012. The position of Airtel is stable .because total debt of airtel is Rs 14,129 which is almost equal to the total debt of Rs.10,138 IDEA cellular. We see an interesting fact here about the secured loans of Airtel and IDEA. The Airtel has been continuously able to pay off their secured loans as we can see the loans in 2008 were Rs. 52 crores which considerably reduced to Rs. 2.90 crores. The IDEA cellular is not able to pay off its secured loans as they kept on increasing from Rs 5,454 crores in 2008 to Rs. 7,794 crores in 2012. We can also infer that the secured loans are comparatively higher of IDEA than Airtel even though the capital of Airtel is much higher than IDEA. This clearly indicates that AIRTEL is a better telecom industry than IDEA.

Now we talk about the investments of both the companies. The Airtel had invested Rs.10,952 crores in 2008 to Rs 15,773 crores which apparently declined to Rs 11,813 and recovered minutely to Rs. 12.337 crores . The investments of IDEA have been decreasing which shows that they havent made much effort in investing or they are not able to make much profits so as to invest further.


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Now we talk talk about the working capital of the two companies.
The current assets of Airtel in 2012 was Rs. 2,325 crores whereas the current assets of Idea are Rs.900 crores . CURRENT ASSETS OF IDEA AND AIRTEL
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When we see the pattern of Airtel we find that the current assets are gradually decreasing. This shows a negative response. As far as Idea is concerned the current assets although do not match up with Airtel but still shows positive growth. Now we look at current liabilities of the companies.


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The current liabilities of Airtel has increased two folds in 4 years, whereas the current liabilities of IDEA hasnt shown much increase.