Telecom sector could bounce back in FY18

Idea is confident volume growth will compensate for weak realisations

While weak March quarter (Q4) results continue to be a dampener in the telecom space with Idea Cellular (Idea) shedding about seven per cent in trade on Monday, incumbent operators are confident that the outlook for FY18 will improve with operating metrics starting to stabilise over the last few months. Idea’s Managing Director Himanshu Kapania, in an investors’ call on Monday, said revenues for the sector have bottomed out in Q4 and expected it to improve from hereon. Idea had reported a one per cent fall in FY17 revenues, its first full-year revenue decline since its listing 11 years ago.