
It's blood on the streets for the telecom industry: The Q3 results for Airtel yesterday showed the big dent that Jio's free plans have had on profits for the telecom sector. Bharti Airtel's results showed the company's cash flow - Rs. 3,500+ crore in the September quarter - had disappeared completely, down to Rs. 1.5 crore as the firm tried to woo back subscribers lured by Jio's free plans. The company's revenues declined by 5.3% YoY, and operating profits fell by 9.5% YoY for the company. Airtel's results don't bode well for the industry as Jio finalizes free plans that extend beyond March. Airtel as the market leader has some cushion in subscribers and revenue. Smaller telecom players are likely to post even worse results.
Donald Trump has pulled out of the TPP trade effort but has separately reached out to India for an economic and defense partnership, calling the country "a true friend and partner". The US plans to host PM Modi soon to discuss a bilateral partnership. There are some aspects of Trump's 'America first' policies however, that may not bode well for Indian companies, including his plans to tax imports and penalize US firms that move jobs and factories abroad.
Stock in spotlight: Atlanta Limited, which is sharply up today on news of the firm receiving a Rs. 1,292 crore NHAI contract for six-laning of the NH8 highway in Gujarat.
Photo of the day: A camel caravan walks through the desert. Hanbing Wang/SkyPixel