Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Money / Divergent growth patterns of telcos
BackBack

Divergent growth patterns of telcos

Divergent growth patterns of telcos

Premium


Also Read Madhucon Projects faces profit squeeze

A number of theories were proposed by analysts to make sense of the difference. Now that Vodafone Essar Ltd’s results are also out, there are some further clues. Vodafone’s revenue grew by 4.5% sequentially, again much higher compared with Bharti.

Graphic: Yogesh Kumar / Mint

DoCoMo has since spread to other circles and is expected to roll out its services across the country. This would eliminate such variations in the future.

Based on this reasoning, Idea’s growth rates won’t be substantially higher in future quarters. Of course, given its lower base and the fact that it is expanding into more circles, its growth rates are likely to be higher. But the extent of the difference will be far lower compared with the December quarter.

Telecom companies also benefited from the seasonality factor in traffic. Traffic slows marginally during the monsoon, causing growth rates in the December quarter to look good. With this factor missing, plus the increased competition after the entry of Uninor, results are likely to be weak across the board in the March quarter.

Write to us at marktomarket@livemint.com

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 09 Feb 2010, 12:38 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App