Draft

YOU - Income statements (aggregated)

INR in million
Revenue
Broadband business
Lease of fibre
EBS
Total revenue (A)
Direct costs
Bandwidth cost
Cost of distribution/collection
EBS business COGS
Direct costs (B)
Gross margin C = (A-B)
Employee costs
Network operations & maint
SG&A
Overheads
EBITDA before GPON cost
GPON cost
EBITDA after GPON cost
Advances written off
Interest expense
Exchange loss on foreign currency loan
Other non operating income (net)
PBDAT
Depreciation and amortisation
PBT

FY13

FY14

794.0
21.7^
82.9
898.7
(99.4)
(27.3)
(82.0)
(208.7)
690.0
(289.8)
(63.3)
(270.9)
(623.9)
66.0
(5.5)
60.6
(1,294.9)
(49.9)
(17.3)
50.0
(1,251.5)
(238.9)
(1,490.4)

H1FY14

H1FY15

953.0
9.1
28.5
990.5

463.4
5.0
15.7
484.1

530.0
4.3
11.2
545.5

(119.4)
(25.0)
(22.1)
(166.6)
823.9
(310.3)
(66.0)
(255.7)
(632.0)
191.9
(17.1)
174.8
(133.1)
(50.8)
(30.4)
31.4
(8.1)
(197.0)
(205.1)

(60.2)
(10.7)
(13.6)
(84.5)
399.6
(162.8)
(32.0)
(117.5)
(312.3)
87.3
(5.7)
81.6
(24.1)
(45.3)
0.1
12.3
(107.7)
(95.4)

(65.5)
(12.6)
(9.0)
(87.1)
458.4
(186.2)
(35.1)
(124.3)
(345.6)
112.7
(11.6)
101.1
(18.0)
(8.0)
6.6
81.7
(102.0)
(20.3)

H2FY14

H2FY15

FY15
1,101.9
7.0
20.0
1,128.9

(131.7)
(25.9)
(14.2)
(171.7)
957.1
(376.3)
(52.7)
(240.4)
(669.4)
287.8
(22.1)
265.6
(105.2)
(27.4)
14.7
(1.3)
146.5#
(198.8)
(52.2)

KPIs
Gross margin %#
EBITDA % before GPON cost
EBITDA % after GPON cost
Average revenue per subscribers (INR) p.a.
EBITDA per subscriber after GPON cost (INR) p.a.
Source: Management information and PwC analysis
Na: Not available

84.0%
7.3%
6.7%
6,923
528

84.8%
19.4%
17.7%
7,611
1,396
# broadband business
*annualised

84.7%
18.0%
16.9%
7,561
1,332

85.3%
20.7%
18.5%
7,703
1,470

85.7%
25.5%
23.5%

EBS-Enterprise Business Solution

^ For the purpose of our analyses we have excluded lease revenue of INR 12.3 million in FY13 received from SCOD18 (group company).

Datapack Project Speed

Page 1 of 14

RIS
Strictly Private Confidential

Draft

Datapack Project Speed

Page 2 of 14

RIS
Strictly Private Confidential

Draft

% change

FY14 v.
FY13

H1FY15 v.
H1FY14

20%
(58%)
(66%)
10%

14%
(14%)
(29%)
13%

20%
(8%)
(73%)
(20%)
19%
7%
4%
(6%)
1%
191%
213%
189%
2%
76%
(99%)
(18%)
(86%)

9%
18%
(34%)
3%
15%
14%
10%
6%
11%
29%
104%
24%
(25%)
(82%)
564%
(5%)
(79%)

Datapack Project Speed

Page 3 of 14

RIS
Strictly Private Confidential

Draft

Datapack Project Speed

Page 4 of 14

RIS
Strictly Private Confidential

Draft

Monthly income statements

INR in million
Revenue
Usage
Unlimited
Rentals
Installation
G'pon
Sale of EBS/HW
VOIP
Corporate
SME
Others
Total revenue

###
###
###
#
###
#
#
##
###
#
#
###

Cost of goods sold

Bandwidth
Cost of Distribution & Collection
Revenue share (G'pon)
VOIP Termination Cost
EBS (Cyber Roam &SI) Direct Cost
Total COGS

#
#
#
##
#
###

Contribution
Contribution % total
Contribution
Contribution % BB

###
###
###
###

Network operations and maintainance

#
Gross profit

###

Operating costs
Other
Staff costs
Office
Other opex
Provision for doubtful debt

###
#
#
#

Common operating cost

Staff costs

Datapack Project Speed

Page 5 of 14

Monthly
Strictly Private Confidential

Draft

Marketing
Office
Other opex
Call centre cost
Total operating cost

#
#
#
#
###

EBITDA (before cost of acqusition)###

Cost of acqusition
Acquisition FOS cost
Other cost of acquisition
Marketing
Total cost of acqusition

#
#
#
###

EBITDA (after cost of acqusition) ###

Non-operating expenses
#
Forex gain/(loss)
#
Interest Income
#
Interest Expense
#
EBITDA after non-operating & NII ###
Depreciation
Amortisation
EBIT

###
#
###

Source: Management information and PwC analysis

Note: FY13 expenses are before provision for doubtful debts of INR 16.4 million

Datapack Project Speed

Page 6 of 14

Monthly
Strictly Private Confidential

Draft

Monthly income statements

INR in million
Revenue
Usage
Unlimited
Rentals
Installation
G'pon
Sale of EBS/HW
VOIP
Corporate
SME
Others
Total revenue

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

H1FY15

20.0
38.0
0.0
9.4
2.8
17.4
0.1
0.7
88.2

20.2
39.7
0.0
11.8
1.0
17.6
0.1
0.6
91.1

19.5
38.8
0.0
12.8
1.4
17.5
0.5
0.6
91.1

20.2
40.4
0.0
13.9
1.4
18.4
0.3
0.6
95.2

19.6
39.7
0.0
13.8
2.6
18.8
0.3
0.6
95.3

19.4
40.3
0.0
11.2
2.1
18.2
0.3
0.6
92.1

118.9
236.8
0.1
72.9
11.2
107.8
1.6
3.7
553.0

Cost of goods sold

Bandwidth
Cost of Distribution & Collection
Revenue share (G'pon)
VOIP Termination Cost
EBS (Cyber Roam &SI) Direct Cost
Total COGS

10.0
2.3
1.5
2.1
15.9

10.0
2.2
1.7
0.7
14.6

10.4
2.2
1.7
1.1
15.3

10.7
2.2
1.9
1.1
15.8

10.8
2.2
2.0
2.0
17.0

11.1
2.2
2.0
1.6
16.9

62.9
13.4
10.7
8.6
95.6

Contribution
Contribution % total
Contribution
Contribution % BB

72.3
82%
71.7
84%

76.4
84%
76.2
85%

75.7
83%
75.4
84%

79.4
83%
79.1
84%

78.3
82%
77.7
84%

75.2
82%
74.8
83%

457.4
83%
454.8
84%

5.6

5.7

4.9

4.7

4.6

4.6

30.1

Gross profit

66.7

70.8

70.8

74.7

73.7

70.6

427.3

Operating costs
Other
Staff costs
Office
Other opex
Provision for doubtful debt

18.9
8.9
0.0
0.4

20.0
9.7
0.3
0.5

20.1
9.8
(0.1)
0.5

22.7
10.6
0.1
0.4

24.8
10.6
0.1
0.5

25.1
10.6
0.1
0.3

131.6
60.2
0.6
2.6

Common operating cost

Staff costs

3.6

3.5

4.2

4.1

4.1

23.2

Network operations and maintainance

Datapack Project Speed

3.7

Page 7 of 14

Monthly
Strictly Private Confidential

Draft

Marketing
Office
Other opex
Call centre cost
Total operating cost

1.3
2.1
1.1
2.6
38.8

1.3
2.0
0.9
2.6
40.7

0.1
1.9
1.1
2.6
39.7

0.1
1.1
0.8
2.6
42.8

0.1
1.1
0.8
2.6
44.8

0.1
1.1
0.8
2.6
44.9

3.1
9.2
5.5
15.7
251.6

EBITDA (before cost of acqusition)

27.9

30.1

31.1

31.9

28.9

25.8

175.6

6.3
0.8
1.9
9.0

6.1
1.3
1.8
9.2

EBITDA (after cost of acqusition)

18.9

20.9

22.3

22.0

20.9

Non-operating expenses
Forex gain/(loss)
Interest Income
Interest Expense
EBITDA after non-operating & NII

0.0
(1.3)
0.7
3.4
14.9

0.0
7.5
1.3
3.2
26.4

3.8
(5.6)
1.2
2.5
11.5

0.0
(0.7)
1.1
2.8
19.6

0.9
(1.5)
1.2
2.7
17.1

1.6
(6.3)
1.2
2.5
8.8

6.4
(8.0)
6.6
17.2
98.2

Depreciation
Amortisation
EBIT

16.8
0.3
(2.3)

16.3
0.3
9.8

16.1
0.3
(4.9)

17.2
0.3
2.1

19.0
0.3
(2.2)

14.8
0.3
(6.3)

100.2
1.8
(3.8)

Cost of acqusition
Acquisition FOS cost
Other cost of acquisition
Marketing
Total cost of acqusition

##

7.0
1.9
(0.2)
8.7

8.2
1.9
(0.2)
9.9

6.3
1.9
(0.2)
8.0

6.0
1.9
(0.2)
7.7
18.0

39.9
9.6
2.9
52.5
123.2

Source: Management information and PwC analysis

Note: FY13 expenses are before provision for doubtful debts of INR 16.4 million

Datapack Project Speed

Page 8 of 14

Monthly
Strictly Private Confidential

Overheads and SG&A costs per subscriber per annum

INR in million
Manpower cost
Outsourced contract cost
Employee costs
Rent expenses
Power & electricity charges
Repairs and maintenance
Network shifting charges
License fees - TRAI and others
Hire charges network equipment
Network operations & mait
SG&A costs
Overheads total
Less: one-time service-tax exp*
Less: one-time repair & main*
Adjusted overheads

FY13
156.9
132.9
289.8
29.2
13.8
12.0
3.9
3.2
1.2
63.3
270.9
623.9
623.9

FY14
H1FY15
153.2
66.0
157.1
120.2
310.3
186.2
33.6
18.4
14.5
7.8
12.0
5.2
2.4
1.8
2.6
1.5
0.9
0.5
66.0
35.1
255.7
124.3
632.0
345.6
(7.9)
(4.4)
(4.0)
620.1
341.2

FY15
166.7
209.9
376.6
29.7
15.7
3.2
0.4
25.1
0.9
75.1
240.4
692.1
(4.4)
687.7

Source: Management information and PwC analysis

* for details refer QOE page 28

No. of subscribers

114,687

125,208

137,608

154,916

H1FY15

FY15

SG&A costs per subscriber per annum

INR in million
Office and admin expenses
Rent
Electricity expenses (office)
Security charges
Travelling expenses
Communication expenses
Other office expenses
Credit card and bank charges
Service tax - expense
Cafetaria
Repairs and maintenance
House keeping expenses
Insurance
Hire charges
Recruitment expenses
Other opex
Legal and professional fees
Audit fees
Others
Office and admin expenses
Advertisement
Sales promotion
Advt & mktg
Call centre cost
Provision for doubt debtors
Dealer commission -activation
Sale promotion - target incentives
Other cost of acquisition
SG&A Total
Less: one-time service-tax exp$

FY13
32.1
19.2
13.1
11.0
8.2
10.9
5.1
6.6
4.6
3.8
5.1
2.3
2.5
15.3
2.2
0.8
142.8
46.3
13.8
60.2
29.7
22.5
4.9
10.7
15.6
270.9
-

FY14
33.7
18.6
15.7
8.2
7.5
10.6
8.5
7.9
7.4
8.9
4.2
5.1
2.5
*
20.9
2.2
1.5
163.3
27.1
13.3
40.4
29.2
5.5
6.2
11.0
17.3
255.7
(7.9)

17.5
10.4
8.9
5.9
5.6
5.5
4.7
4.4
3.9
3.0
2.7
2.0
1.1
*
6.0
1.6
0.6
84.1
9.6
4.9
14.5
15.8
2.7
2.6
4.5
7.2
124.3
(4.4)

39.7
19.8
18.6
11.8
9.2
6.0
9.8
4.4
9.0
6.7
4.9
4.2
4.6
1.5
17.8
2.9
171.2
8.4
5.6
14.0
36.9
4.6
5.0
8.7
13.7
240.41
(4.4)

2.7

Less: one-time repair & main$

Adjusted SG&A

270.9

(4.0)
243.8

119.9

236.0

Source: Management information and PwC analysis

* Regoruped as part of employee costs

(240.4)
0.0

Cost per subscriber

FY13
FY14
H1FY15
1,368
1,224
960
1,159
1,255
1,747
2,527
2,478
2,707
254
268
267
120
116
113
105
96
75
34
19
26
28
21
22
10
7
7
552
527
511
2,362
2,042
1,806
5,440
5,047
5,024
(63)
(64)
(32)
5,440
4,952
4,960
^annualised H1FY15 over FY14

FY15
2,152
2,710
4,862
383.1862
203.2506
41.92134
5.642012
324.6068
11.03496
970
3,104
8,936
(57)
0
8,879

Cost per subscriber

FY13
280
168
115
96
71
95
45
58
40
33
45
20
22
133
19
7
1,245
404
121
524
259
196
42
94
136
2,362
-

FY14

H1FY15

269
149
125
65
60
85
67
63
59
71
33
41
20
167
17
12
1,304
217
106
323
233
44
50
88
138
2,042
(63)

254
150
130
86
81
80
69
65
57
44
40
30
16

% change in cost
FY14
H1FY15^
(2%)
(14%)
18%
53%
7%
20%
15%
9%
5%
8%
0%
(14%)
(39%)
48%
(18%)
18%
(22%)
13%
4%
6%
(6%)
(3%)
1%
9%

% change in cost
FY15

FY14

H1FY15^

513
256.1534
240.5156
152.0574
119
77
127
57
117
87
63
54
60

5%
(3%)
19%
(26%)
(8%)
(3%)
65%
12%
94%
11%
(1%)
11%
-

4%
11%
14%
45%
49%
3%
12%
13%
6%
(32%)
31%
(19%)
(15%)
-

88
230
24
37
9
1,222
2,210
140
108
71
73
211 181.1275
230 477.0231
39 59.38702
38
64.0496
66 112.5532
104
177
1,806
3,104
(64)
(57)

36%
1%
96%
14%
(41%)
(4%)
(33%)
(2%)
(76%)
28%
3%
11%
(6%)
#DIV/0!

(42%)
50%
(23%)
3%
(29%)
(26%)
(28%)
8%
(3%)
(15%)
(18%)
(17%)
(3%)
11%

2,362

(32)
1,947

1,743

^annualised H1FY15 over FY14

$ for details refer QOE page 28

3,047

#DIV/0!

(100%)

Office and admin costs

% change in cost
INR in million
FY13
Office and admin expenses
Rent
32.1
Electricity expenses (office)
19.2
Security charges
13.1
Travelling expenses
11.0
Communication expenses
8.2
Other office expenses
10.9
Credit card and bank charges
5.1
Service tax - expense
Cafetaria
6.6
Repairs and maintenance
4.6
House keeping expenses
3.8
Insurance
5.1
Hire charges
2.3
Recruitment expenses
2.5
Other opex
Legal and professional fees
15.3
Audit fees
2.2
Others
0.8
Office and admin expenses
142.8
Less: one-time service-tax exp$
Less: one-time repair & main$
Adjusted Office and admin exp 142.8

FY14
33.7
18.6
15.7
8.2
7.5
10.6
8.5
7.9
7.4
8.9
4.2
5.1
2.5
*
20.9
2.2
1.5
163.3
(7.9)
(4.0)
151.4

H1FY15
17.5
10.4
8.9
5.9
5.6
5.5
4.7
4.4
3.9
3.0
2.7
2.0
1.1
*
6.0
1.6
0.6
84.1
(4.4)
79.7

FY15
38.6
19.8
18.6
11.8
9.2
6.0
9.8
4.4
9.0
6.7
4.9
4.2
4.6
1.5
17.8
2.9
170.0
(4.4)
165.6

Source: Management information and PwC analysis^annualised H1FY15 over FY14

* Regoruped as part of employee costs

FY14
5%
(3%)
19%
(26%)
(8%)
(3%)
65%

H1FY15^

12%
94%
11%
(1%)
11%

4%
11%
14%
45%
49%
3%
12%
13%
6%
(32%)
31%
(19%)
(15%)

36%
1%
96%
14%

(42%)
50%
(23%)
3%

6%

5%