Telcos may report flattish revenues in Jan-Mar; tariff hikes, VI fundraise eyed
NEW DELHI : Indian telecom operators Reliance Jio, Bharti Airtel and Vodafone Idea are expected to report largely steady revenues and profits for the quarter ended 31 March, but the first half of the current fiscal year will see them put up a better show, buoyed by likely tariff hikes. Indus Towers, a leading telecom infrastructure provider, is expected to report relatively better numbers, boosted likely by part-payment of its dues by Vodafone Idea.
Analysts and brokerages tracking the sector said that the upcoming two quarters are likely to see upsides for the sector, as they expect tariff hikes by up to 20% after the general elections end in June, spectrum auctions in the same month, and Vodafone Idea’s massive fundraise, including the ₹18,000 crore-follow on offer this week. “We expect a stable set of numbers from India telcos, with 0-3% qoq (quarter-on-quarter) improvement in cellular revenues and largely flattish EBITDA margins," said analysts at BofA Securities in a note.
Reliance Jio is expected to keep is subscriber-addition momentum going and to be better than in the quarter ended December 2023, with 11.5 million net additions. However, average revenue per user, or ARPU, for the March quarter is expected to be flat on a sequential basis.
ARPU is considered as a key metric for profitability of a telecom operator. Airtel’s consolidated revenue is expected to rise 3.8% sequentially to ₹39,300 crore, with addition of 3.9 million subscribers and 1.6% improvement in ARPU, owing to premiumization and addition in broadband subscribers.
Ebitda (earnings before interest, taxes, depreciation, and amortization) margin may improve 71 basis points sequentially to 53%. For Vodafone Idea that will launch its FPO on 18 April to
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