Reliance Jio announced its first tariff hike in 2.5 years on June 27th. Within 24 hours of this announcement, Bharti Airtel also raised its tariffs in a similar manner.
Jio’s new tariffs will see an increase ranging from 12.5 percent to 25 percent, while Bharti Airtel’s tariffs will go up by 10 percent to 20 percent. These revised tariffs are set to come into effect from July 3rd.
For Jio, the entry-level plan, catering to the most price-sensitive customers, will see a 22 percent increase to Rs. 189 per month. Airtel, on the other hand, raised its entry-level plan tariff by 11 percent to Rs. 199 per month.
Meanwhile, the second day of India’s spectrum auction witnessed telecom firms collectively investing about Rs. 11,340 crore in radio waves. This total accounts for just 12 percent of the government’s minimum estimated spectrum value of Rs. 96,238 crore.
Bharti Airtel emerged as a major participant, securing 97 MHz of spectrum across the 900, 1800, and 2100 MHz bands, with an expenditure totalling Rs. 6,856 crore.
Jio acquired 14.4 MHz of spectrum in the 1800 MHz band, amounting to Rs. 973 crore, while Vodafone Idea obtained 30 MHz of spectrum across the 900, 1800, and 2500 MHz bands, spending Rs. 3,510 crore.
Here are the four telecom companies that are in focus following the recent tariff hikes.
Indus Towers Limited
With a market cap of Rs. 1.02 lakh crore, the share price of India’s leading provider of passive telecom infrastructure surged by 5.2 percent to hit a new 52-week high at Rs. 384.75 in the trading session of Friday, as against its previous closing price of Rs. 365.65.
The stock has delivered multibagger returns of around 130.6 percent in the last one year, and 86.7 percent of positive returns year-to-date.
In terms of financial performance, the revenue from operations stood at Rs. 7,193.2 crore in Q4 FY23-24, rising by 6.5 percent YoY from Rs. 6,753 crore in Q4 FY22-23, while the after-tax profit grew by 32.4 percent to Rs. 1,853 crore from Rs. 1,399 crore, during the same period.
Indus Towers Limited deploys, owns and manages telecom towers and communication structures, for various mobile operators, and serves all wireless telecommunication service providers in India.
Bharti Airtel Limited
With a market cap of Rs. 8.28 lakh crore, the share price of a global communications solutions provider surged by 4.6 percent to hit a new 52-week high at Rs. 1,539.1 in the trading session of Friday, as against its previous closing price of Rs. 1,471.8.
The stock has delivered positive returns of about 67 percent in the last one year, and around 43.8 percent returns year-to-date.
In terms of financial performance, the revenue from operations stood at Rs. 37,599 crore in Q4 FY23-24, rising by 4.4 percent YoY from Rs. 36,009 crore in Q4 FY22-23, but the after-tax profit fell by 51 percent to Rs. 2,068.2 crore from Rs. 4,226 crore, during the same period.
Bharti Airtel Limited is India’s largest integrated communications solutions provider and the second-largest mobile operator in Africa.
Reliance Industries Limited
With a market cap of Rs. 21.3 lakh crore, the share price of India’s largest private sector company surged by 3.3 percent to hit a new 52-week high at Rs. 3,161.45 in the trading session of Friday, as against its previous closing price of Rs. 3,061.1.
The stock has delivered positive returns of nearly 34.7 percent in the last one year, and around 21.4 percent returns year-to-date.
In terms of financial performance, the revenue from operations stood at Rs. 2,64,834 crore in Q4 FY23-24, rising by 10.8 percent YoY from Rs. 2,38,957 crore in Q4 FY22-23, while the after-tax profit fell by 0.4 percent to Rs. 21,243 crore from Rs. 21,327 crore, during the same period.
Founded in 1958, Reliance Industries Ltd. (RIL) has multiple business interests ranging from oil exploration and petrochemicals to telecommunications to retail and more.
Reliance Jio Infocomm Limited, a subsidiary of RIL, provides wireless telecom products and services, along with offering voice, data, and messaging services, as well as selling smartphones and hotspot devices.
Vodafone Idea Limited
With a market cap of Rs. 1.21 lakh crore, the share price of Vodafone Idea surged by 3.4 percent to hit a new 52-week high at Rs. 19.15 in the trading session of Friday, as against its previous closing price of Rs. 18.52.
The stock has delivered multibagger returns of around 140.7 percent in the last one year, and 5.8 percent of positive returns year-to-date.
In terms of financial performance, the revenue from operations stood at Rs. 10,574 crore in Q4 FY23-24, rising by xx percent YoY from Rs. 10,509 crore in Q4 FY22-23, while the net loss grew to Rs. 7,674.6 crore from Rs. 6,418.9 crore, during the same period.
Vodafone Idea Limited is a major telecommunications provider in India, offering voice, data, enterprise services and other Value Added Services (VAS), including short messaging services, digital services, IoT etc.
Written by Shivani Singh
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