Telecom, pharma on revival path as businesses limp back to pre-Covid levels

In the second part of the series, we are looking at the telecom, pharma, and automotive sectors

Telecom sector: Strong signal of tariff hikes
 
Telecos will push to raise their average revenue per user (ARPU) by 25 per cent over the next 6-12 months.
 
This will be critical to sustain a healthy and sustainable return on capital employed (RoCE) of 10 per cent, amid rising liabilities from adjusted gross revenue (AGR) dues.
 
We expect average monthly ARPUs to reach Rs 175-180 in FY22 from around Rs 140 in the first half of FY21. Of course, this will depend on the competitive intensity, and the ARPU growth will lead to a non-linear increase in profitability,