Roman GłogulskiThe telecommunications sector in India is expected to see revenue growth in the third quarter of this year, thanks to the addition of new subscribers and market expansion. However, the growth in profit margins will be limited by the costs associated with the implementation of 5G technology.
One of the leading players in the market is Bharti Airtel Ltd., which is expected to see a revenue growth of 3.5% compared to the previous quarter, reaching 38,338 crore rupees, according to analysts from the Bloomberg consortium. Despite this growth, the margin will remain stable at 52%, and net profit is expected to increase by 36% to 2,854 crore rupees.
On the other hand, Vodafone Idea, facing its own challenges, is forecasted to have a 2% growth in revenue, reaching 10,957 crore rupees. However, the expected margin is lower than the previous quarter at 38.6% compared to 39.9%. On a positive note, it is estimated that the net losses for the October-December period will be lower and amount to 7,287 crore rupees, compared to 8,737.9 crore rupees in the second quarter.
As for the forecasts for Jio Infocomm, which are not yet available, analysts from Prabhudas Lilladhar suggest a 4.1% increase in revenue and a 7.1% increase in EBITDA compared to the previous quarter. The predicted results for Jio Infocomm are 25,760 crore rupees and 13,860 crore rupees, respectively.
Considering the average revenue per user (ARPU) of 184.9 rupees, which represents a 2% increase compared to the previous quarter, and an estimated number of 96 lakh new subscribers in the second quarter, Prabhudas Lilladhar expects favorable results for Jio Infocomm.
In conclusion, the telecommunications sector in India expects revenue growth as it continues to attract new subscribers. However, the costs associated with the introduction of 5G technology are expected to limit profit margins for industry players.
