Morgan Stanley estimates Jio to grow 5.7 per cent sequentially to Rs 3,552 crore in the June quarter, while Emkay estimates Airtel’s Q1 net profit to be limited to around Rs 318 crore sequentially.
airtel jio vodafone idea
Reliance Jio and Bharti Airtel are likely to post modest sequential growth in mobile revenue and average revenue per user (ARPU) in the June quarter. Whereas Vodafone Idea (Vi) is facing a fall on both metrics due to the fall in data consumption and the impact of free recharge for the users.
According to a Gadget Now report, analysts said Jio and Airtel are likely to add good customers in the first quarter of the fiscal, mainly due to Vi’s cash crunch, which has made the company unable to compete with rivals on the 4G front. The loss of customers is also certain to increase.
This will be the earning of Jio and Airtel
Morgan Stanley estimates that Jio will reach Rs 3,552 crore in the June quarter with a sequential growth of 5.7 per cent. This will be the company’s 15th profitable quarter, helped by a combination of higher operating income and good customer base.
On the other hand, Emkay estimates that Airtel’s Q1 net profit will be limited to around Rs 318 crore sequentially, due to sluggish ARPU growth and sharp reduction in data subscribers. This shows that after adding an average of 10 million users in four quarters, Airtel’s data users fell to 1.6 million in the April-June period. Apart from this, the quarterly loss of Vi is expected to come down slightly to Rs 6,629 crore, mainly due to heavy loss of customers and decrease in data user base.
There will be a reduction in the AMDU of Jio, Airtel and Vi
JM Financial expects Jio, Airtel and Vi to report a gradual decline in their Average Monthly Data Usage (AMDU) per user in the June quarter as “the second Covid wave hit the professional/middle income segment which is the largest consumer of data usage in India”. It’s a big part.”
The brokerage estimates that Jio added 8 million users in the January-March period to grow its user base to 434 million – down from 15.4 million in the January-March period. On the other hand, if we talk about Airtel, it is estimated that the company has made a profit of 2 million users, due to which its user base has reached 323 million. Apart from this, Vi has lost 7 million users and its user base has now reached 261 million.
Jio can beat Airtel
Emkay Research expects Jio to beat Airtel on customer additions due to “full impact of JioPhone tariffs launched in February 2021”.
JM Financial estimates that Jio and Airtel India posted modest sequential growth of 3.3% and 3.2% respectively in the June quarter in terms of wireless revenue in terms of user addition and sequential ARPU growth. On the other hand, the revenue of Vi is expected to decline by 3% on a quarterly basis. Apart from this, the consolidated revenue of Airtel is expected to grow by 3.4% sequentially.
Analysts estimate that the impact of reduction in data usage and free recharge will reduce ARPU growth, reporting Airtel and Jio, while Vi is projected to decline to 1.7% sequentially.
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