Indian Telecom Industry - Outlook Stable; Steady Improvement Continues In The Performance Of Telcos: ICRA
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ICRA Research Report
With consolidation in the telecom services industry, the tower industry faced tenancy exodus over the FY18-FY20 period.
Thereafter, tenancy levels witnessed steady addition in FY21 and the trend is likely to continue.
Bharti Airtel Ltd. and Reliance Jio have been adding tenancies, while tenancy exits from Vodafone Idea Ltd. have stabilised.
Tenancy ratios are likely to remain around 1.3-1.5 times for the industry.
The receivable position of the industry has stabilised with increase in collection efficiency from Bharat Sanchar Nigam Ltd., post the partial implementation of revival package, and with a steady payment cycle for Vodafone Idea.
With this, the incremental working capital blockage is expected to witness a decline.
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