Oil & Gas, Chemical, Telecom Sector Q3 Earnings Preview: Reliance Securities
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Reliance Securities Report
India’s gas consumption, which has witnessed 2.3% compound annual growth over FY17 - FY21, is expected to clock 9% CAGR over FY21 - FY24E, largely on account of:
upcoming fertiliser capacities, which are expected to consume ~12 million metric standard cubic meter per day of gas;
commencement of city gas distribution in more than 228 new geographical areas; and
new refining and petrochemical capacity.
Indian specialty chemicals companies delivered a resilient performance in FY21 and the industry is set to grow to $40 billion by FY25E. 'China plus one' strategy is the key catalyst for global firms to turn towards India.
We expect India’s telecom tower companies to face headwinds in the next two years led by:
very minimal capex on the tower side, as public launch of 5G will take more than a year; and
likelihood of the tower companies becoming mere infrastructure providers, as the incremental capex of telcos will be incurred towards software upgradation only.
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