Ericsson has reported sales of Swedish Krona (SEK) 1.6 billion from its Indian operations during the quarter ended June 30, 2014. The sales were up by 23 percent when compared to SEK 1.3 billion recorded during the corresponding quarter in 2013.
In terms of Indian currency, the year-on-year sales growth recorded by Ericsson stood at 35 per cent due to variation in the average exchange rate. The company?s sales had increased from Rs 11.05 billion during quarter ended June 2013 to Rs 14.89 billion during the corresponding quarter in 2014.
The growth in sales has been attributed to the increased spending on mobile broadband infrastructure by telecom operators in India. Faced with rising data demand and growing data volumes on their networks Indian operators have increased their investments in setting up mobile broadband networks and infrastructure. Further, growth in sales related to operations support systems (OSS) and business support systems (BSS), has also been a contributor to Ericsson?s sales growth from Indian operations.
Commenting on the results, Hans Vestberg, president and chief executive officer, Ericsson has stated that, ?sales in the quarter year-over-year were driven by growth in the Middle East, China and India, as well as continued capacity business in North America. After a slow start of the year, we are executing on previously awarded 4G/LTE contracts in Mainland China and Taiwan. Furthermore, the investment climate in India is improving following the concluded spectrum auctions and government elections held in May.
