Telecom - Expect improvement in overall performance - Angel Broking

During the quarter, we expect our coverage telecom companies to report a good set of numbers. We expect healthy revenue growth for the industry on the back of increase in MOU, uptick in voice ARPM as well as growing data users, and improvement in margin performance. Amongst the top three operators, we expect Idea Cellular (Idea) to lead in terms of revenue growth followed by Bharti Airtel (Bharti) and Reliance Communications (RCom). We expect Idea to post a 4.1% sequential revenue growth while Bharti and RCom are expected to post a revenue growth of 2.0% and 1.7% qoq, respectively. On the margins front, we expect the EBITDA margin of Bharti and Idea to see marginal uptick while the EBITDA margin of RCom is expected to decline by 94bp qoq.

Source : Equity Bulls

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