Q4FY21 Result Preview - Telecom - ICICI Direct

We expect Airtel to lead subscriber addition again in Q4FY21. For Bharti Airtel (Airtel), we bake in subscriber addition of ~9 million (mn) while for Vodafone Idea (VIL), we expect sub loss of ~2 mn (similar to Q3). Q4FY21 will witness the impact of IUC going to zero impacting both topline and costs. For Airtel, reported ARPU is likely to see ~6.5% QoQ decline (~9% decline owing to IUC impact offset by ~2.5% like to like growth) at Rs. 155. Indian wireless revenues are expected to see 3.1% QoQ decline at Rs. 14,326 crore. For Vodafone Idea, with ARPU decline of ~9% QoQ (~11% decline owing to IUC impact offset by ~2% like to like growth) at Rs. 110, we expect overall revenues to decline 8.8% QoQ at Rs. 9940 crore.

Muted quarter for TCom; STL to report stellar numbers

For Tata Communication (TCom), with disruption in the European region due to Covid-19 and continued delays in closure of transformation deals, the data business is expected to post 2.5% QoQ topline growth (up ~1.1% YoY) at Rs. 3636 crore. Hence, overall revenue is expected to grow 2% QoQ (down 2.1% YoY) at Rs. 4307 crore. Data segment margins are expected at 26.9% (down 200 bps QoQ given one-offs in Q3) but up 400 bps YoY. Overall margins are expected at 23.5% (down 130 bps QoQ). Sterlite Tech (STL) is expected to report topline growth of 25% YoY to Rs. 1452 crore driven by depressed base (wherein revenue had fallen ~35%) and some recovery in product segment demand. EBITDA margins for the quarter are expected to fall 50 bps YoY to 18.1%, given higher product pricing in the base quarter. Reported PAT at Rs. 114 crore is expected to be up 42% YoY.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Telecom_Q4FY21.pdf

Source : Equity Bulls

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