Telecom services firms to report 39% increase in profit in 2012-13
Telecom Lead Asia: India’s telecom services companies are expected to report 39 percent increase in profit in 2012-13, according to Economic Survey.
According to the survey — announced one day before the Union budget 2013-14– the telecom services sector’s cumulative profit-after-tax had declined 71 percent.
The Survey — citing an analysis done by the Centre for Monitoring Indian Economy (CMIE) — said the telecom sector has been one of the fastest growing sectors in recent years. It is now the second largest telephone network in the world, after only China.
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“A series of reform measures by the government, wireless technology, and active participation by the private sector played an important role in the exponential growth of the telecom sector in the country,’’ it said.
Foreign direct investment (FDI) plummeted by 96 percent to $70.46 million in April to November 2012 period. The sector saw FDI of $1,987.18 million for the same period a year ago.
The cumulative FDI in the sector from April 2000 to November 2012 period stood at $12.62 billion.
The telecom sector saw decline of bank credit throughout the financial year 2011-12 from 17.77 percent to 15.21 cent, the Survey said.
Bank credit has affected Indian telecom operators. The average bank credit for the sector was at Rs 930.43 crore throughout 2011-12 fiscal.
The recent announcement of reform measures at regular intervals including mild relaxation in the monetary and credit policy, sectors like retail, construction, and telecom are expected to perform better.
The survey said telecom connections (wire and wireless) increased from 4,297.25 lakh in 2008-09 to 9,513.4 lakh in 2011-12.
Till 31 December, 2012, around 8,955 lakh connections have been provided.