
With credit expansion as of July’s end at 13.1% compared to 13.4% for the entire year in the prior financial, analysts at Bank of Baroda predicted that credit growth to the telecom industry would reach levels observed in FY22 in FY23.
According to the bank, credit to the industry has been growing since FY18 but plummeted 21.9% in FY21 as a result of the epidemic.
The telecom sector has generated money over the years using various methods, including bonds. It acquired a total of 2,414 crores in FY20; this increased to 28,861 crores in FY21; however, it declined to 9,150 crores in FY22. Around $545 crore had been collected by the industry as of July this year.
The bank also stated that permits for external commercial borrowing, or ECB, in the telecom industry increased to $1.3 billion in FY22 from $0.8 billion in FY21, with the majority of that amount being utilised for operating capital and loan refinancing. There have been no ECB proposals from the telecom sector as of July.
Over the last few fiscal years, starting in FY18, carriers such as Reliance Jio, Bharti Airtel, and Vodafone Idea have seen a steady increase in net revenue, while net profit fell dramatically in FY20 but has since increased. “The rate of contraction has slowed significantly.”
Data show that while losses decreased from 263 billion to 145 billion, net revenues increased to 2,045 billion in FY22 from 1,423 billion in FY18.