Bharti Airtel, Idea Cellular, Tata Comm hit 52-week lows
Idea Cellular, Tata Communications and Bharti Airtel were down in the range of 3% to 6%, as compared to 0.32% rise in the S&P BSE Sensex at 11:17 am.
 "Bharti Airtel, Idea Cellular, Tata Comm hit 52-week lows")
premium
Shares of telecom services providers (telcos) are under pressure with all major listed stocks – Bharti Airtel, Idea Cellular and Tata Communications – hitting their respective 52-week lows on the BSE, on concerns of weak earning in June quarter (Q1FY19).
Idea Cellular (down 6% to Rs 49.50), Tata Communications (5% at Rs 543) and Bharti Airtel (3% at Rs 331) were down in the range of 3% to 6%, as compared to 0.32% rise in the S&P BSE Sensex at 11:17 am.
Idea Cellular (down 6% to Rs 49.50), Tata Communications (5% at Rs 543) and Bharti Airtel (3% at Rs 331) were down in the range of 3% to 6%, as compared to 0.32% rise in the S&P BSE Sensex at 11:17 am.
In past one month, these three stocks have fallen in the range of 10% to 20% against 3% rise in the benchmark index.
According to Motilal Oswal Securities, the spillover of the fresh round of undercutting by operators from 4QFY18 to 1QFY19 continued to take a toll on telcos’ revenue.
Further, consolidation in the telecom sector had fuelled the exit of tenancies, leading to higher tenancy cost per operator. This, coupled with installation of cell sites on fresh towers (non-loading) and soaring diesel prices, is expected to increase the QoQ network cost for all operators, the brokerage firm said in Q1FY19 results preview.
Continued hyper competitive environment and down trading along with full quarter impact of international interconnection usage charge (IUC) cut would lead to decline in mobility revenues for another quarter. Pain for the quarter would increase with rise in network opex, driven by aggressive broadband sites rollout and rise in diesel prices, Emkay Global Financial Services said in results preview.
Continued off-take of bundled plans and enhanced discounts would lift both voice as well as data volumes. EBITDA for both, Bharti and Idea would continue on the downward spiral, it added.
| COMPANY | LATEST | ONE-MONTH BEFORE | LOSS(%) |
| IDEA CELLULAR | 49.95 | 62.25 | -19.76 |
| REL. COMM. | 12.79 | 15.15 | -15.58 |
| BHARTI AIRTEL | 333.75 | 371.25 | -10.10 |
| TATA COMM | 545.20 | 605.80 | -10.00 |
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%