Together good things happen - Airtel

Bharti Airtel Annual Report 2009-10
(Shares in Thousands) As of March 31, 2010
As of March 31, 2009
Number of Weighted Weighted Number of Weighted Weighted
stock options average average stock average average
exercise remaining options exercise remaining
price (Rs.) contractual price (Rs.) contractual
life (in Years) life (in Years)
Cancelled or expired 450 - - -
Outstanding at period end 2,995 340.00 5.42 to 6.76 2,450 340 0
Exercisable at end of period 471 340.00 - -
Weighted average grant date fair value/exercise price per option
for options granted during the period at less than market value 995 478.01 2,450 374.81
Indus Options **
Number of shares under option:
Outstanding at beginning of period - - - -
Granted 2,134 249.00 - -
Exercised - - - -
Cancelled or expired 137 - - -
Outstanding at period end 1,997 249.00 5.43 - -
Exercisable at end of period - - - -
Weighted average grant date fair value/exercise price per option
for options granted during the period at less than market value 2,134 368.00 - -
*Options have been exercised out of the shares issued to the trust
** The above represents details of all the ESOS of Indus.
The weighted average share price during the year was Rs.365.42.
(vi) The fair value of the options granted was estimated on
the date of grant using the Black-Scholes / Lattice
valuation model with the following assumptions
Particulars For the year For the year
ended March ended March
31, 2010 31, 2009
Risk free interest rates 5.35% to 8.50% 4.45% to 9.70%
Expected life 48 to 84 months 48 to 72 months
Volatility 36.13% to 58% 36.23% to 49.26%
Dividend yield 0% to 0.31% 0.00%
Weighted average share price
on the date of grant 307.42 to 680 616.80 to 832.55
The volatility of the options is based on the historical
volatility of the share price since the Group’s equity
shares became publicly traded, which may be shorter
than the term of the options.
(vii) The balance of deferred stock compensation as on March
31, 2010 is Rs 1,642,167 thousand (March 31, 2009 Rs
1,495,823 thousand) and total employee compensation
cost recognized for the year then ended is Rs 1,446,351
thousand (March 31, 2009 Rs 893,527 thousand).
20. Earnings per Share
The board of directors in its meeting held on April 29,
2009 have approved sub-division (share split) of existing
equity shares of Rs 10 each into 2 equity shares of Rs 5
each, which was duly approved by postal ballot by the
shareholders of the Company on July 11, 2009.
Accordingly, EPS for the year ended March 31, 2010 and
previous year has been restated, as applicable, below:
Particulars As at As at
March 31, 2010 March 31, 2009
(Post Split) (Post Split)
Basic and Diluted Earnings per Share :
Nominal value of equity shares (Rs.) 5 5
Profit attributable to equity
shareholders (Rs'000) (A) 91,631,284 78,589,545
Weighted average number of equity
shares outstanding
during the year (B) 3,796,858,204 3,796,210,078
Basic earnings per Share (Rs.) (A / B) 24.133 20.702
Dilutive effect on profit (Rs.'000) (C )* (3,172) 2,097
Profit attributable to equity shareholders
for computing Diluted EPS
(Rs'000) (D)=(A+C) 91,628,112 78,591,642
Dilutive effect on weighted average
number of equity shares outstanding
during the year (E)* 1,071,751 1,130,095
Weighted Average number of
Equity shares and Equity Equivalent
shares for computing
Diluted EPS (F)=(B+E) 3,797,929,955 3,797,340,173
Diluted earnings per
share (Rs..) (D/ F) 24.126 20.696
*Diluted effect on weighted average number of equity shares and profit
attributable is on account of Foreign Currency Convertible bonds and
Employee Stock Option Plan (ESOP).
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