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Market players will track announcements of telecom companies' Apr-Jun earnings coming week, which will determine the movement of the stocks in the sector. Bharti Airtel Ltd's stocks may rise, as the market expects a 47% sequential rise in its consolidated net profit for Apr-Jun at 7.47 bln rupees. The company will detail its quarterly earnings Wednesday. Furthermore, consolidated revenues are seen 3% higher quarter on quarter at 210.67 bln rupees. We expect 4.2% QoQ (quarter on quarter) growth in consolidated revenues and 5.1% QoQ growth in consolidated EBITDA. We expect volume-led 4.9% QoQ growth in India/SA (South Africa) wireless revenues and 70 bps QoQ margin expansions. Idea Cellular Ltd's stock is also expected to rise based on its earnings expectations.
Idea Cellular is expected to register revenue growth of 4.7% QoQ. ARPU (average revenue per user) and MoU (minutes of use) is expected to be at 170 rupees and 410 rupees respectively. Idea Cellular, which will detail its quarterly numbers Thursday, is likely to report a net profit of 4.1 bln rupees against 3.1 bln rupees in the previous quarter. Largely, telecom stocks are expected to gain next week. However, the markets will particularly look for foreign exchange losses caused by the rupee depreciation. ARPM's (average revenue per minute) and MoU's for most companies are definitely expected to rise.
