Rupee, diesel ringing in trouble for telcos

Rupee depreciation can be a double whammy in terms of foreign currency debt repayments and the payments of forex creditors for capex, said an Icra report

Rs 4,000 cr – Cash outgo seen for telecom firms this fiscal due to rupee depreciation

3-4% – Estimated fall in industry Ebitda

Rs 4.7 lakh cr – Total estimated debt as on March 31, 2018

Rs 1 lakh cr – Estimated foreign debt of telcos

Rs 1.3 lakh cr – Total forex exposure of the industry

Rs 30,000 cr – Estimated foreign currency creditors

Rs 13,000 cr – Total diesel consumption of the industry at tower sites

15% – hike in diesel prices will erode Ebitda by around Rs 2,000 crore

Elevated debt levels and need for constant capex have weighed down on the cash flow position and debt coverage metrics," — Harsh Jagnani, sector head & vice president, corporate ratings, Icra