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How AGR redefinition can impact telcos’ financials

Late Monday evening, the Department of Telecommunications (DoT) had introduced a concept of applicable gross revenue (ApGR), which is arrived at by excluding all non-telecom revenue earned by telcos from their gross revenue (GR).

IIFL Securities estimates Jio, Airtel and Vi to garner an extra Rs 100 crore, Rs 90 crore and Rs 60 crore of earnings before interest, tax, depreciation and amortization (Ebitda) from the December quarter onwards, which works out to around 1 per cent, 0.8 per cent and 1.5 per cent increases, respectively.

Vodafone Idea (Vi), Bharti Airtel and Reliance Jio will see around a 1-1.5 per cent rise in quarterly operating income and some margin expansion along with improved cash flow from the fiscal third quarter onwards after exclusion of a host of non-telecom income items under the new definition of adjusted gross revenue (AGR), analysts said. VerveTimes


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