Ensuing tariff hikes to fuel revenue growth, better debt metrics for telcos in FY2022: ICRA

Telecom service providers could undertake the next round of tariff hikes over the next one or two quarters, which is expected to fuel revenue growth in fiscal 2022, ICRA said on Monday.

The industry topline is expected to grow by 11-13 per cent over the next two years, with operating margins improving to about 38 per cent for the financial year 2022 on the back of improved cash flows, moderate capex and limited borrowings, it said.

“Next round of tariff hikes are expected soon as the industry debt continues to remain elevated, likely to at Rs 4.7 lakh crore as on March 31, 2022,” ICRA said in a release.