StatsGuru: Squeezing the stressed telecom sector

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Much attention has been given to the attempt in this year's Union Budget to mobilise funds from the telecommunications sector - non-tax revenue from the communication sector in the Budget is considerably higher than the previous year's already recorded receipts, as shown in Table 1.

But the telecom sector is showing signs of stress - although debt shrank marginally in the last financial year, it is still considerable in size, as shown in Table 2 - and continues to be a significant proportion of total assets, as Table 3 points out. The telecom market continues to be highly competitive, with several major players - shown in Table 4.

Monthly average revenue per user, in Table 5, has grown, but at a less quick pace than earlier. Meanwhile, sales growth has plateaued, as Table 6 shows - and operating profit has consistently been shrinking for years, as Table 7 reveals. These worrying numbers have caused listed telecom stocks to solidly underperform the broader market, as shown in Table 8.