Airtel’s NBFC capital infusion unlikely to impact its cash flows: Citi Research

New Delhi: Bharti Airtel’s entry into the non-banking financial company (NBFC) space is expected to emerge as a strategic growth driver, supported by a planned capital infusion of Rs 200 billion over the next few years, according to a Citi Research report.

The report noted that Bharti Airtel currently generates approximately Rs 600 billion in annual consolidated free cash flow (excluding spectrum costs). Additionally, Airtel has initiated the final 75 per cent call on its Rs 210 billion partly-paid rights issue. Citi Research stated that the proposed NBFC capital infusion is unlikely to materially impact Airtel’s leverage or cash flows.