Chart Beat: Revenue steady in Q3, tariff hike may dial up growth for telcos
Revenue growth for the top three telecom operators in India was steady in the December quarter (Q3FY24), rising 2% sequentially and 9% year-on-year, according to a Jefferies India report. Notably, Bharti Airtel Ltd was the only telecom company to clock an improvement in sequential revenue growth at 3% in Q3.
This was due to better-than-expected average revenue per user. While Reliance Jio's revenue growth was largely stable at 2.5% quarter-on-quarter, Vodafone Idea Ltd’s (VIL) sales dropped.
“While the sector's revenue growth needs tariff hikes to accelerate, Bharti and Jio's focus on network investments, amidst VIL's capex falling to multi-year lows, would continue to drive market share gains in favor of Bharti/Jio," said the Jefferies’ analysts. Overall, “India mobile revenues continued to rise for the 17th straight quarter and are at their peak levels of $29 billion (annualized)," they added
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