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Telecom sector revenue won t grow beyond high-single digits in coming quarters: Jefferies, ET Telecom

Telecom Revenue: However, they expect 5G capex spends to decelerate from FY25 onwards, which would pave the way for free cash flow (FCF) generation for the country s private carriers after a 13-year gap, which would be a big catalyst for re-rating, going forward. "Revenue growth for the sector remains in high single-digits and needs a tariff hike for improvement, but lower network costs could offset margin impact of higher sales & marketing costs," Jefferies said

tariff hike: Telecom sector revenue won t grow beyond high-single digits in coming quarters: Jefferies

​​However, they expect 5G capex spends to decelerate from FY25 onwards, which would pave the way for free cash flow (FCF) generation for the country s private carriers after a 13-year gap, which would be a big catalyst for re-rating, going forward. "Revenue growth for the sector remains in high single-digits and needs a tariff hike for improvement, but lower network costs could offset margin impact of higher sales & marketing costs," Jefferies said

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