Telecom industry is on the path to recovery, but AGR an overhang: ICRA

NEW DELHI: Recent mobile tariff hike by telcos are pointing towards greenshoots of recovery in the sector, according to ratings agency ICRA, although adjusted gross revenues (AGR) related dues remain a major overhang.

“The tariff hikes are expected to lead to restoration of pricing power to the telcos and would result in improvement in the operating metrics of the industry,” Ankit Jain, Assistant Vice President, Corporate Ratings, ICRA said.

“We expect the industry revenues to grow by 15% in FY2020 and 18% in FY2021 to reach Rs. 2.57 lakh crore, while the industry OPBDITA (operating profit before interest, tax, depreciation and amortisation) is expected to grow by 53% in FY2020 and 21% in FY2021 to touch Rs. 75,000 crore,” he added.