Indian Telecom Industry - Outlook Stable; Steady Improvement Continues In The Performance Of Telcos: ICRA

A telecommunications tower stands on top of a building. (Photographer: Susana Gonzalez/Bloomberg)

Indian Telecom Industry - Outlook Stable; Steady Improvement Continues In The Performance Of Telcos: ICRA

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICRA-Telecom Services Update.pdf

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