Reliance Jio and Airtel might witness rise in revenue during Q2 FY22, says Jefferies

Reliance Jio and Bharti may post a 5-7 per cent sequential rise in revenue with a steady margin in the second quarter of FY22, according to Jefferies. As per the company, Bharti Airtel’s growth will be driven by segmented tariff hikes implemented in the quarter ended September 2021, while Jio’s growth will be driven by continued subscriber growth.

Jefferies expects that the outlook on airtime tariff hikes for Airtel, JioPhone Next details, and Indus Tower tenancy levels will be the key developments in the September 2021 quarter.

Moreover, Airtel and Jio are likely to experience opposing subscriber and average revenue per user (ARPU) trends with Airtel seeing steep ARPU increases with flat subscriber growth and Jio seeing steady ARPU growth, the company stated, pointing out that margins will remain stable.

Based on tariff hikes in the prepaid voice and corporate postpaid segments that were implemented in August, Jefferies expects India mobile revenues to increase by seven per cent quarter-on-quarter in Q2 FY22.