MAJOR RESEARCH PROJECT

on

A Comparative Study on Key Financial

Indicators of Selected Companies of Telecom
Industry

Submitted By:

AMULYA GARG

2K21/DMBA/26

Under the Guidance of:

Dr. RAJAN YADAV

(Professor)

DELHI SCHOOL OF MANAGEMENT

Delhi Technological University
Bawana Road Delhi 110042
 STUDENT DECLARATION

I, Amulya Garg student of Delhi School of Management, Delhi Technological

University hereby declare that the Major Research Project on A Comparative Study
on Key Financial Indicators of Selected Companies of Telecom Industry
submitted in partial fulfilment of the requirements for the award of the degree of
Master of Business Administration (MBA) is the original work conducted by me. I
also confirm that neither I nor any other person has submitted this project report to any
other institution or university for any other degree or diploma. I further declare that
the information collected from various sources has been duly acknowledged in this
project.

Name of the Student: AMULYA GARG

Roll No.: 2K21/DMBA/26
 CERTIFICATE

This is to certify that AMULYA GARG, have completed the project titled “A
Comparative Study on Key Financial Indicators of Selected Companies of Telecom
Industry” as a part of Master of Business Administration (MBA) curriculum of Delhi
School of Management, New Delhi.

Mentor: Prof. Rajan Yadav Head of Department

Delhi School of Management Delhi School of Management

Delhi Technological University Delhi Technological University

 ACKNOWLEDGEMENT

I wish to record my deep sense of gratitude to Delhi School of Management, Delhi

Technological University for giving me this great opportunity to apply my knowledge
in practical world.

I express my profound gratitude to Prof. Rajan Yadav. He always listened to thoughts

about the project, and always taken a keen interest for the completion of same. He also
provided me great insights of the companies through several meetings.

I would also like to thank my parents and friends who helped me a lot in finalizing this
project within the limited time frame.
TABLE OF CONTENTS

STUDENT DECLARATION .......................................................................................2

CERTIFICATE .............................................................................................................3

ACKNOWLEDGEMENT ............................................................................................4

CHAPTER 1: INTRODUCTION .................................................................................8

1.1 HISTORY OF TELECOM INDUSTRY .......................................................8

1.2 INDIAN TELECOM INDUSTRY OVERVIEW ..........................................9

1.3 TELECOM INDUSTRY REVENUES ........................................................10

1.4 PLAYER DYNAMICS IN TELECOM INDUSTRY..................................11

CHAPTER 2: LITERATURE REVIEW ....................................................................12

2.1 RESEACH GAP...........................................................................................13

CHAPTER 3: RESEARCH METHODOLOGY ........................................................14

CHAPTER 4: FINANCIAL ANALYSIS ...................................................................15

CHAPTER 5: CONCLUSION, SUGGESTIONS AND LIMITATIONS..................24

REFFERENCES .........................................................................................................26
LIST OF FIGURES
Figure 1: Telecom Industry .......................................................................................10
Figure 2: Gross Revenues of Telecom Industry ........................................................10
Figure 3: Market Share of companies........................................................................11
Figure 4: Current Ratio ..............................................................................................16
Figure 5: Debt-Equity Ratio ......................................................................................17
Figure 6: Interest Coverage Ratio..............................................................................18
Figure 7: Asset Turnover Ratio .................................................................................19
Figure 8: Debtor Turnover Ratio ...............................................................................20
Figure 9: Operating Margin Ratio (%) ......................................................................21
Figure 10: Return on Capital Employed (%) .............................................................22
Figure 11: Net Profit Margin (%) ..............................................................................23
LIST OF TABLES
Table 1: About the Companies ..................................................................................11
Table 2: Current Ratio ...............................................................................................16
Table 3: Debt to Equity..............................................................................................17
Table 4: Interest Coverage Ratio ...............................................................................18
Table 5: Asset Turnover Ratio ...................................................................................19
Table 6: Debtor Turnover Ratio.................................................................................20
Table 7: Operating Margin.........................................................................................21
Table 8: Return on Capital Employed .......................................................................22
Table 9: Net Profit Margin.........................................................................................23
CHAPTER 1: INTRODUCTION

1.1 HISTORY OF TELECOM INDUSTRY

The telecom sector, often known as the telecommunications sector, has an extensive
and complicated history extending several decades. The first telegraph networks
were created in the 19th century, enabling the use of Morse code to send messages
across great distances.
The telephone device, invented by Alexander Graham Bell in 1876, revolutionised the
communication by allowing people to interact with one another across great distances.
Guglielmo Marconi sent the first wireless radio signal in 1901, setting the stage for
contemporary radio and television broadcasting.
Following that, the first commercial radio stations start transmitting in the United
States in the year 1920, and shortly after, other nations do the same. The first coaxial
cable is installed in the 1940s, enabling the long-distance transmission of television
signals.
The first communication satellites were then sent into orbit in 1960, considerably
extending the reach of communication networks. The first mobile phone networks
were created in the 1980s, enabling mobile phone use.
Then, in the 1990s, the internet began to revolutionise communication by making it
possible for individuals to immediately send and receive information across great
distances. By the early 2000s, smartphones and mobile data networks have
revolutionised communication, causing a surge in mobile services.
The telecom sector has historically been a key player in bridging the global divide
between individuals and enterprises, as well as in fostering technical advancement and
economic prosperity.
The Internet of Things, 5G technology, and other innovations are driving innovation
and rise in the telecom sector today.
Over the past few years, telecommunication developed into one of the crucial pillars
of infrastructure growth. It has developed into one of the most key regions for
economic and social progress, which is essential for the overall expansion of the
country. After China, India now boasts the 2nd largest communication network in the
world, becoming one of the most promising industries in the world.
1.2 INDIAN TELECOM INDUSTRY OVERVIEW
The telecom industry is very vast and complex sector that includes wide range of
services and technologies. At its core, the industry is focused on enabling
communication between individuals, businesses, and organizations across vast
distances, using a variety of wired and wireless networks. India is the world’s 2nd
largest telecommunications market. The total customer base has continuously
increased, including both wired and wireless broadband subscriptions. As of April
2022, tele-density was approx. 84.88%, total broadband subscriptions rose up to
788.77 million, and the subscribers base as a whole was approx. 1.16 billion. The
telecom industry can be broadly divided into three categories:
Telecommunications equipment manufacturers: These companies design,
manufacture, and sell a variety of telecommunications equipment, such as cell towers,
switches, routers, and other network infrastructure.
Telecommunications service providers: These companies provides a variety of
services to customers, such as voice and data communications, internet access, and
entertainment services like cable TV and streaming video.
Telecommunications software and services providers: These companies develop and
provide software and services that help telecommunications companies manage their
networks, improve customer experience, and optimize their operations.
The telecom industry is a highly competitive industry, with players competing for
share of market in each category. Some of the largest players in the industry include
Airtel, Vodafone, Jio etc
In previous years, the telecom industry has seen a shift towards the development of
new technologies like 5G, which promises to offer faster and more reliable
communication services. The industry is also increasingly focused on the development
of Internet of Things (IoT) technologies, which will allow a huge number of devices
to be connected to the internet and interact with each other.
 Figure 1: Telecom Industry
Source: https://www.ibef.org/industry/telecommunications

1.3 TELECOM INDUSTRY REVENUES

Figure 2: Gross Revenues of Telecom Industry

Source: https://www.ibef.org/industry/telecommunications
1.4 PLAYER DYNAMICS IN TELECOM INDUSTRY
Wireline
Broadband
Company Year Presence Subscriber Ownership
Subscriber
Base
Broadband
and mobile 421.05 Reliance
Jio 2013 5.33 million
(GSM) in 22 million Industries Limited
circles
Bharti Group
Broadband (45.48%), Pastel
and mobile 361.35 Ltd (14.79%),
Airtel 1995 5.58 million
(GSM) in 22 million Indian Continent
circles Investment
(6.65%)
Broadband
A. B. Group and
Vodafone and mobile 266.05
2020 0.53 million Vodafone Group
Idea (GSM) in 22 million
partnership
circles
Table 1: About the Companies

Figure 3: Market Share of companies

Source: https://www.ibef.org/industry/telecommunications
CHAPTER 2: LITERATURE REVIEW
An important study conducted by Barot & Japee. (2021) on the topic “Financial
Performance of selected Telecom Companies in India” explains that India is currently
the 2nd largest telecom market in the world. The nation's overall subscribers base stand
at a total of 1,183.49 million as of January 2021, while the telecom industry's gross
revenue for the third quarter of fiscal year 2021 was $9.35 billion. Small businesses
that were ruthlessly crushed by the telecom leader have been dealing with several
troubles for the past five years. The article makes an effort to examine the financial
results of country's top telecom service providers following the debut of Reliance JIO.

Another study conducted by Khan, & Raj. (2020) on “Liquidity-profitability analysis

& prediction of bankruptcy-A study of select telecom companies” tell us that One of
the telecom businesses has already declared bankruptcy as a result of the fierce
competition, while other competitors in the market have performed poorly due to the
pricing war between the providers. Despite numerous government attempts, the
industry is still not showing clear indications of progress, and if this situation
continues, further bankruptcy filings may occur in this industry. The objective of the
paper is to evaluate the financial stats of Indian telecom industry and forecast the
insolvency of a few chosen companies. In the Indian telecom industry, there are about
ten telecom companies. Based on market capitalization, the study's top six companies
were chosen. The study examined the effects of profitability and liquidity on the
companies. The research is descriptive and empirical in character. Data was taken from
selected telecom providers' financial filings. According to the study, the majority of
telecom companies in the Indian telecom industry operate in the "Grey" zone, which
is not good news for the sector. The majority of the companies also performed poorly
in terms of liquidity and profitability. According to the study's findings, Indian telecom
companies should perform better in terms of profitability and liquidity so that the
sector demonstrates signals of stability.
Ramachandran, & Kelkar, (2019). conducted a research study on Financial
Performance of Telecom Industry in Sultanate of Oman. The purpose of the study was
to assess the telecom sector's financial performance in Oman. The findings of the
research show that Omantel fared better than Ooredoo. The study provides suggestions
for firms to invest in that will yield higher returns to investors. An investor might use
the parameters selected for study to aid in his fundamental analysis of selecting an
investment portfolio.
The study conducted by Gupta, Raghav & Dhakad (2019). On “the effect on the
telecom industry and consumers after the introduction of reliance Jio” focused on
effects of arrival of Jio in the telecom industry, adjustments made to the industry's
structure, market share, and reforms carried out, as well as Jio's impact on people and
consumers behaviour and the business plans of rivals. The study claims that Jio
challenged the market to the extent where it caused rivals to combine or go out of
business. There was an obvious shift in network usage from other networks to Jio as a
result of consumers being eager to test out the new competition.

2.1 RESEACH GAP

Telecom industry changes every day. The industry evolves and has the requirement of
regular research through which we can gather new relevant data to plan the future of
the industry and predict relevant changes for the consumer and finances accordingly.
Allocating funds is also a crucial part which can be evaluated and calculated via the
latest developments.
This study also focuses on the financials of this industry which further helps the
investors to make a wise investment decision post evaluating and studying this
research and not getting stuck in the narrative fallacy bias.
Providing a guideline for Indian research to develop on this research and expand it as
per the emerging trends and requirements of the market. This paper can work as a
guideline for them and help them in the later stages.
CHAPTER 3: RESEARCH METHODOLOGY
Research Objectives: To investigate and examine the financial position of key
telecom players.
Research Design: Descriptive research design.
Type of Research: The research study is descriptive research
Data Collection: The secondary data has been collected for 5 years starting from
2017-18 to 2021-22.
Evaluation Criteria: The study analysis the financial performance with the help of
ratio analysis. Ratios used are:
• Current Ratio
• Debt-Equity Ratio
• Interest Coverage Ratio
• Debtor Turnover Ratio
• Operating Margin
• Profit Margin
• Asset Turnover Ratio
• Return on Capital Employed
Source of Data: The data is obtained from the annual reports of companies.
Statistical Tool used: Microsoft Excel
Scope of Study
 Study helps us in determining the financial health of telecom industry.
 To identify the emerging player in the telecom industry basis the financial
KPIs.
CHAPTER 4: FINANCIAL ANALYSIS
Financial analysis is the systematic process of analysing a company's financial position
and health by using financial statements of companies and other financial data. The
objective of financial analysis is to assess and evaluate a company's financial position,
profitability, and liquidity, and to identify trends and patterns in its financial data.
In financial analysis, a number of essential instruments and methods are employed,
including:
Ratio analysis is the process of computing and assessing financial ratios including
debt, profitability, and liquidity ratios. These ratios can shed light on a firm's financial
situation and performance, and they are used to assess how the company is performing
in relation to its own historical performance or to industry averages.
Analysing financial data over time to spot patterns and trends is known as trend
analysis. A company's financial performance can alter over time, and trend analysis
can be used to predict future success.
Analysing a company's cash flows, both in and out, will help to determine its liquidity
and overall financial health. If a business has enough cash on hand to pay its
commitments and make investments in future development, it may be determined
through cash flow analysis.
Comparative analysis compares a company's financial performance to that of its rivals
or to standards set by the industry. Comparative analysis may shed light on a
company's overall performance and point up potential areas for improvement.
Financial analysis is used by investors, lenders, and other stakeholders to evaluate a
company's financial health and to make informed decisions about investing or lending
money to the company. It is an essential tool for understanding a company's financial
performance and for making sound financial decisions.
 Current Ratio
The company's working capital situation is shown by the current ratio. The ideal ratio
is 2:1, however it is very difficult to maintain such in the telecom industry. Since the
telecom sector is a service provider, there is no inventory of stock. Both the liquid ratio
and the current ratio are identical when there is no stock on the balance sheet.

Figure 4: Current Ratio

2018-19 2019-20 2020-21 2021-22 2022-23

Reliance Jio 0.32 0.35 0.3 0.37 0.58
Airtel 0.54 0.48 0.66 0.77 0.74
Vodafone Idea 0.43 0.56 0.37 0.25 0.32
Table 2: Current Ratio
From the above graph we can see that airtel has maintained their Current Ratio best in
the industry. Also, we can see that Airtel and Reliance Jio have become more efficient
in their operations from 2019-20 to 2021-22 but in the past year Reliance Jio increased
their current ratio at a very high rate whereas current ratio of Airtel fell down. In case
of Vodafone Idea, we can see that after 2019-20 they have continuously experienced
the reduction in current ratio whereas in the past year they are trying to revive and
coming back in industry to compete with Airtel and Reliance Jio.
 Debt-Equity Ratio
The debt-to-equity ratio represents the amount of debt in comparison to the company's
equity share capital. Better financial circumstances result from a lower ratio. If the
D/E ratio is negative, it means that the shareholder’s equity is also decreasing.
Therefore, the liabilities of company are more than the company’s assets. Most of the
time, this would be interpreted as a warning indication of high risk and a possibility to
file for bankruptcy.

Figure 5: Debt-Equity Ratio

2018-19 2019-20 2020-21 2021-22 2022-23

Reliance Jio 0.37 0.39 0.58 0.6 0.45
Airtel 0.62 0.74 1.01 1.39 1.74
Vodafone Idea 1.86 1.71 10.71 -4.18 -3.11
Table 3: Debt to Equity
From the above graph and table above, we can say that the D/E ratio for Airtel and Jio
are up to par, it is important for a company to maintain debt as debt is cheaper option
for capital and it also gives a tax advantage to the companies. Whereas for Vodafone
Idea the ratio deteriorates in the year 2021-22 as their D/E ratio fell down from10.71
in 2020-21 to -4.18 in 2021-22 i.e., in negative which shows the signs of bankruptcy
and high risk but in the year 2022-23 we can see that the situation for company is
improving.
 Interest Coverage Ratio
The interest coverage ratio determines how many times a company's earnings are
enough to cover its current debt in interest. A greater ratio means there are more than
enough profits to pay down the debt. However, it might also indicate that the business
is misusing its debt. Additionally, a low or negative interest coverage ratio tells that
the firm is unable to pay its financial obligations and that there are insufficient
revenues available to cover the debt's interest costs.

Figure 6: Interest Coverage Ratio

2018-19 2019-20 2020-21 2021-22 2022-23

Reliance Jio 10.82 5.86 4.7 2.41 6.13

Airtel 1 0.69 0.17 0.71 0.84
Vodafone Idea -0.41 -1.06 -0.55 -0.35 -0.35
Table 4: Interest Coverage Ratio
From the above graph we can conclude that Jio has the best interest coverage ratio
among the three companies i.e., they can easily pay their interest expense which can
help them in future in taking a debt. For airtel the ratio is declining constantly over the
year hence the company should bring changes into their strategies and should try at
least maintain a ratio of 1. Whereas for Vodafone Idea strict measure need to be taken
to improve their interest coverage ratio i.e., they should try to increase their profits or
reduce debts to improve this ratio.
 Asset Turnover Ratio
The Asset Turnover Ratio (ATR) tells how useful the company's assets are in creating
sales. It contrasts the quantity of sales (revenues) to the total assets as an annualized
percentage.

Figure 7: Asset Turnover Ratio

2018-19 2019-20 2020-21 2021-22 2022-23

Reliance Jio 0.94 1.07 0.88 0.59 1.05
Airtel 0.29 0.23 0.22 0.24 0.25
Vodafone Idea 0.29 0.21 0.17 0.15 0.14
Table 5: Asset Turnover Ratio
From the above graph we can say that Jio has constantly maintained the highest asset
turnover ratio for the past five years, the company recorded decrease in asset turnover
ratio from the year 2019-20 to 2021-22 but made the recovery in the past year i.e.
2022-23. As for Airtel and Vodafone Idea they need to improve their efficiency and
they should assure that they use their resources effectively and efficiently. Both the
companies have the capabilities to grow at a very high rate in future if they can use
their assets properly. The companies should compare their strategies and operations
with jio to understand where they lacking behind and where else they improve to gain
competitive advantage over their competitors as only with effective and efficient use
of resources and assets a company can gain competitive advantage in the industry.
 Debtor Turnover Ratio
Account Receivables Turnover Ratio is another name for Debtors Turnover Ratio. This
ratio represents how often debtors are turned into cash over the period of one year.

Figure 8: Debtor Turnover Ratio

2018-19 2019-20 2020-21 2021-22 2022-23

Reliance Jio 38.33 34.16 37.38 47.92 50.28

Airtel 14.25 12.16 14.2 18.41 24.71

Vodafone Idea 25.94 17.57 14.36 15.55 15.82
Table 6: Debtor Turnover Ratio
From the above graph we can conclude that Reliance has maintained the best Debtor
turnover Ratio in the industry over the period 2018 to 2022. The company has
constantly experienced rise in the debtor turnover ratio every year. Airtel also has
continuously improved their debtor turnover ratio but still need to be more efficient
with collecting payments from their debtors to reduce the duration of working cycle
which will help them in bringing more effectiveness and efficiency in their processes,
also the company can rely more on their own earning if they collect the payments more
frequently which will reduce the capital cost overall. Debtor Turnover ratio for
Vodafone Idea is continuously falling and they need to focus on how to improve this
position. They can learn from their competitors or come up with innovative ideas to
get through this problem.
 Operating Margin Ratio (%)
The operational margin calculates a company's sales profit after variable
manufacturing expenses, such as raw material, labour etc., but before interest or taxes.
Thus, operational margin reveals the level of financial risk inside a business. This ratio
aids investors in deciding whether or not to invest in a specific stock.

Figure 9: Operating Margin Ratio (%)

2018-19 2019-20 2020-21 2021-22 2022-23

Reliance Jio 19.64 17.56 18.19 17.32 14.19
Airtel 35.3 41.38 41.2 47.22 51.69
Vodafone Idea 22.58 11.72 34.47 39.95 40.8
Table 7: Operating Margin
From the above graph we can see that Airtel is leading in the industry over the period
of five years. Also, we can see that the operating margin for Airtel is continuously
increasing over the years, the company achieved approximately 52% in 2022-23 from
35% in 2018-19. For Vodafone Idea the margin is continuously increasing after 2019-
20 and they have experienced growth at a very high rate, which is a good sign for the
company. They recorded operating margin growth from 22.5% in 2018-29 to 40.8%
in 2022-23. Whereas for Reliance Jio we can see that the company is not able to
maintain the operating margin and they have experienced a decline in operating margin
from 19.6% in 2018-19 to 14.19% in the year 2022-23.
 Return on Capital Employed (%)
The capital efficiency and profitability of a business are evaluated using the return on
capital employed (ROCE) ratio. An investor can use this ratio to aid in decision-
making by learning which companies will be able to use their capital the most
effectively and which companies will be able to provide the highest returns. If a
company uses its capital effectively, it will be able to earn high returns and will also
provide higher returns to investors.

Figure 10: Return on Capital Employed (%)

2018-19 2019-20 2020-21 2021-22 2022-23

Reliance Jio 12.11 11.38 8.99 5.6 8.12

Airtel 3.49 3.01 0.96 3.79 5.4
Vodafone Idea -2.35 -5.27 -6.11 -4.53 -5.5
Table 8: Return on Capital Employed
From the above graph we can see Jio is leading in industry and they are continuously
using their capital most efficiently as compared to airtel and Vodafone idea. In the year
2022 Jio recorded ROCE of 8% whereas airtel and vi recorded 5.4% and -5.5%
respectively. For vi the ROCE is in negative throughout the period of five years which
indicates that the company is not doing good and they need be more efficient otherwise
they will not be able meet their current liabilities.
 Net Profit Margin (%)
A measure of net income or profit as a percentage of revenue, is called as profit
margin. A higher profit margin ratio means the company has made a profit over sales,
which means it has more cash on hand to distribute to shareholders or put towards new
business ventures.

Figure 11: Net Profit Margin (%)

2018-19 2019-20 2020-21 2021-22 2022-23

Reliance Jio 11.01 9.12 9.37 9.91 8.38
Airtel 1.38 1.89 10.04 -24.47 -2.29
Vodafone Idea -16.02 -43.42 -92.56 -58.14 -73.88
Table 9: Net Profit Margin
From the above graph we can see that in the past two years Jio is the only company
having profit margin in positive whereas Airtel and Vodafone Idea both have negative
profit margin for the financial years 2021-22 and 2022-23 which is not a good sign for
company as they won’t be able to sustain for long in industry and they will look for
cost cutting in which they might have to lay off some employees. Also, for Vodafone
Idea the situation is very bad as they are incurring losses for a very long period which
makes it difficult for them to compete in the industry.
CHAPTER 5: CONCLUSION, SUGGESTIONS AND
LIMITATIONS
After conducting a financial analysis of the Indian Telecom Industry, it is clear that
the sector has witnessed a significant growth in recent years. The introduction of 4G
& 5G technology and increasing internet penetration has led to a surge in demand for
data services, which has resulted in a significant increase in revenue for telecom
companies.

Reliance Jio
The company saw a high growth in short period of time and they achieved high
revenues. On the basis of ratio analysis, reliance needs to improve their Current Ratio,
they should try to maintain at least a ratio of 1:1.
The company can rely more on Debt for financing funds as they have low debt-equity
ratio, this would result in lower cost of capital also and help in expansion into further
projects.
As for interest coverage ratio the company has maintained a good interest coverage
ratio and they can easily pay their interest expense on their borrowing which is a good
sign for the company as they can easily raise more funds through debt because of this.
Company has constantly maintained the highest asset turnover ratio among the peers
for the past five years, the company recorded a decrease in asset turnover ratio from
the year 2019-20 to 2021-22 but made the recovery in the past year i.e. 2022-23.
Reliance has maintained the best ROCE and Debtor turnover Ratio in the industry over
the period 2018 to 2022. The company has experienced constant growth in the debtor
turnover ratio over the years.
The company is not able to maintain the operating margin and they have experienced
a decline in operating margin from 19.6% in 2018-19 to 14.19% in the year 2022-23.

Bharti Airtel
Airtel has maintained the best Current ratio, operating margin and Debt-Equity ratio
in the industry as compared to their peers. The company needs to focus on to maintain
these ratios and make sure there are no discrepancies. As for the interest coverage ratio
the company can improve this ratio as it will help them in raising funds through debt
and increase more trust among the investors
The company need to improve their efficiency and they should assure that they use
their resources effectively and efficiently which will result in better ROCE and asset
turnover ratio. Company has the capability to grow in future if they can use their assets
and capital effectively and efficiently.
Airtel has continuously improved their debtor turnover ratio but still need to be more
efficient with collecting payments from their debtors to reduce the duration of working
cycle.
The profit margin of the company is very less which is not a good sign as, if the
company is not earning any profits, then they won’t be able to meet their expenses
which will result in higher loses.

Vodafone Idea
The company is having low current ratio as compared to its peers. They should focus
on maintain a better current ratio. Company’s Debt-Equity and interest coverage ratio
is very critical and they need to improve it as currently it shows the signs of bankruptcy
which can be overcome by managing their debt to equity and interest coverage ratio
properly.
The company needs to start managing their resources properly to improve their asset
turnover ratio and ROCE as this will result in high profits and less expenses which will
increase the overall performance of the company.
The company has negative profit margins which shows that the company is incurring
losses due to which the company will not be able to survive for long the market.
Hence the Vodafone Idea needs to works on maintaining better financial stability to
attract investors and improve the position of the company.

Limitations of The Study

• This study is based on secondary data.
• The study is wholly on the basis of data published by the companies and
we cannot verify it.
• The current research is based on information from previous years about the
financial performance of telecom companies. Further study in this area is
possible given the changing financial performance of telecom companies
in the present dynamic business environment.
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