Idea, Airtel likely to miss estimates, says Goldman Sachs

Goldman Sachs expects Bharti Airtel and Idea Cellular July-Sept earnings falling short of street estimates on higher forex estimates for Bharti and wages and 3G interest expense for the latter.

Goldman Sachs in a note said that Bharti has missed estimates for the last five quarters due to relatively weaker execution, impact of higher expenses like branding costs, tax rates or amortisation/interest expenses.

[caption id="attachment_101579" align="alignleft" width="380" caption="Goldman Sachs in a note said that Bharti has missed estimates for the last five quarters due to relatively weaker execution, impact of higher expenses like branding costs, tax rates or amortisation/interest expenses. Reuters"][/caption]

"We expect EBITDA margins for Indian telcos to decline quarter-on-quarter, driven by the impact from slower revenue growth, a minor impact from fuel/power cost increases," the investment banker added.

At 2: 30 pm shares in Bharti were at Rs350.235 rupees, down 3.percent and Idea stock was 6.5 percent lower at Rs 88.50 on NSE .

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Reuters