Sector Indices

Name Value Change %
BSE 100 9,304.31 [42.6] [0.5]
BSE 200 2,181.79 [8.3] [0.4]
BSE 500 6,825.15 [22.3] [0.3]
BSE AUTO 9,713.36 [22.2] [0.2]
BSE BANKEX 11,986.92 [81.7] [0.7]
BSE CD 6,168.83 [16.8] [0.3]
BSE CG 10,293.52 [28.0] [0.3]
 

Telecom (Q3 FY10) Sector Review

India Infoline Research Team / 15:51 , Feb 03, 2010

Q3 FY10 did not throw any nasty surprises as leading wireless operators reported better than expected revenue growth. Bharti/Rcom saw revenue decline of 0.5%/3.9% while EBIDTA % were in line with estimates save for Rcom. Idea MOUs up 3.7% qoq but were flat for Bharti after multi-quarter declines. Rcom MOU, however, declined 2.9%, partly made up by 2p fall in rev/min vs. 4p for Bharti. Tata Comm (TCOM) topline declined 23% yoy probably due to sluggish volumes and falling wholesale voice prices. OnMobile too was affected by lower revenue contribution from incremental subscribers as well as impact of TRAI directive on VAS promotions. Migration of customers to per second billing would most likely be completed by Q4 FY10 even as we expect at least another 2-3 quarters of weak earnings. However, Bharti should emerge stronger in a post 3G/MNP scenario and we retain it as top pick in the sector.

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