The Indian Telecom Industry’s Debt Problem In Three Charts

June 11, 2017

India’s top seven telecommunications companies saw their total debt burden rise 20 percent in financial year 2016-17. From Rs 3,02,321 crore in the previous year to Rs 3,59,940 crore.
Vodafone India Ltd. was the only one among the seven which saw a 22 percent fall in its total debt after parent Vodafone Plc. infused equity worth Rs 47,700 crore to repay loans.
The mounting debt burden has not only resulted into rising finance costs for the companies but has also diminished their ability to re-pay debt. Recently, Anil Ambani-owned Reliance Communications Ltd.s’ debt was downgraded to default rating by multiple rating agencies citing “significant stress on its cash flows and high level of debt”. Source

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