Tariff hikes, 4G adds to aid telcos in Q3: Reports

Riding on the benefits of the recent tariff hikes, continuing subscriber additions and pick-up in 4G net additions, telecom companies are expected to post “good” third quarter results.

According to analysts’ reports, for the incumbents, resumption of services in Jammu & Kashmir (J&K) would be in their favour, while Internet shutdown in various parts of the country would have its impact.

“We expect 3Q to be a good quarter for Indian telcos, led by some benefit of tariff hike (for December), good subs momentum and Q-o-Q margin improvement. We also expect commentary on exit ARPU to be good, which would help overall momentum for telcos,” BofA Securities said in a report.