INSUBCONTINENT EXCLUSIVE:
Kolkata: The first round of price hikes in over three years is set to immediately boost revenue, operating income and margins of Reliance
Jio, Bharti Airtel and Vodafone Idea in the fiscal third quarter, said analysts
They, however, expect full impact of the higher tariffs to be palpable only in the January-March period.
The higher tariffs, experts said,
are unlikely to have triggered any sharp fall in consumption of voice and data services during the December quarter as many mobile users are
on longer-term validity plans
Analysts though added that minor dips on that score could have been the result of frequent internet shutdowns and mobile service disruptions
last month amid countrywide protests over the Citizenship Amendment Act (CAA).
In early December, Bharti Airtel, Vodafone Idea and Jio
increased their bundled prepaid tariffs by around 14-33 per cent.
Axis Capital estimates Mukesh Ambani-led Jio to report a near 60 per cent
It also expects the price rise and pass-through of interconnect usage charge (IUC) to users to help the telecom market leader arrest the
cent sequential gain to Rs 123.
The brokerage also estimates Sunil Mittal-led Airtel and Vodafone Idea to narrow their December quarter
losses to around Rs 1,490 crore and Rs 4,324 crore, respectively.
Airtel and Vodafone Idea, it estimates, will also report modest Arpu gains
on-quarter to Rs 129 and Rs 107, respectively.
Airtel and Vodafone Idea had posted unprecedented losses of Rs 23,045 crore and Rs 50,922
crore, respectively in the July-September quarter, after provisioning for adjusted gross revenue (AGR)-based dues following a Supreme Court
statutory dues upwards of Rs 53,000 crore and Rs 35,000 crore, respectively, which they need to clear by January 23
Both have filed limited review pleas in the apex court, in the hope of softening the AGR blow
in December 2019 though the full impact is expected only in Q4FY20
note.
Jio is likely to report December quarter results around the third week of this month, while Airtel and Vodafone Idea are likely to do
still be on longer-validity packs (such as 84-day plans), and any dips in data consumption in the third quarter, if at all, may have been
told ET.
The price hikes by the Big 3 telcos though, he said, are likely to trigger sequential growth in their Q3 revenue, earnings before
interest, tax, depreciation and amortisation (Ebitda) and Arpu, although the full beneficial impact of the hikes would be evident only in
For Airtel, consolidated revenue may grow 8 per cent on-year and 3.4 per cent on-quarter to Rs 21,859 crore, helped by price hikes, growth
in India wireless revenue, three million-odd customer adds and resumption of mobile services in J-K
quarterly revenue, it estimates, will also rise 2 per cent on-quarter, but fall 6 per cent on-year to Rs 11,063.5 crore, also helped by more
sequentially, courtesy, revenue growth and synergy benefits.
