Q3FY21 Result Preview - Telecom - ICICI Direct

We expect Bharti Airtel (Airtel) to lead subscriber addition in Q3FY21 aided by VIL churn and challenges faced by the new operator due to farmer's protest. For Airtel, we bake in subscriber addition of ~7.5 million (mn), while for Vodafone Idea (VIL), we expect sub loss of ~4 mn (much lower than average churn of ~10 mn seen in the last four quarters). For Airtel, reported ARPU is likely to see ~2% QoQ growth at Rs. 165. Indian wireless revenues are expected to see 5.3% QoQ growth at Rs. 14,565 crore. For Vodafone Idea, with ARPU growth of ~3% QoQ at Rs. 123, we expect overall revenues to grow 0.6% QoQ at Rs. 10,861 crore.

TCom to report muted quarter QoQ; STL to improve QoQ

For Tata Communication (TCom), given the seasonally weak quarter (more holidays) and continued delays in closure of transformation deals, the data business is expected to post a 2% QoQ topline decline (up ~4.4% YoY) at Rs. 3570 crore. Hence, overall revenue is expected to decline 2.4% QoQ (up 1.5% YoY) at Rs. 4294 crore. Data segment margins are expected at 28.4% (down 200 bps QoQ given one-offs in Q2) but up 750 bps YoY. Overall margins are expected at 24.8% (down 150 bps QoQ as Q2 had one-off costs benefits). Sterlite Tech (STL) is expected to report topline growth of 5% YoY to Rs. 1263 crore driven by benign base (wherein revenue had declined by ~10%) and some recovery in product segment demand. EBITDA margins for the quarter are expected to decline 150 bps YoY to 18.6%, given the higher product pricing in the base quarter. Reported PAT at Rs. 84.7 crore, is expected to be up 61% YoY (as Q3FY20 had one-off tax settlement). Adjusted PAT is expected to decline 6.5% YoY.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Telecom_Q3FY21.pdf

Source : Equity Bulls

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