Chart Beat: Revenue steady in Q3, tariff hike may dial up growth for telcos

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, Jefferies said. (Image: Pixabay)
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, Jefferies said. (Image: Pixabay)

Summary

  • Bharti Airtel saw improvement in sequential revenue growth, Reliance Jio's was largely stable and Vodafone Idea's sales dropped

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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