The Indian telecom sector is poised for further growth as average revenue per user continues its upward trajectory from current levels of ₹220, according to Srinivas Rao Ravuri from Bajaj Life Insurance.
Data consumption has become as essential as basic needs, transforming telecom into a strong cash-generating industry. Industry ARPU, which had touched a low of ₹107 a few years ago, has doubled.
“Today the industry ARPU is closer to ₹220 and we can see this only going up,” Ravuri observed, maintaining a fairly positive outlook on the sector and its leading players.
Ravuri also discussed the rapid expansion of the gold loan business, which has become one of the largest lending segments for several financial institutions.
He said the rapid growth of the gold finance sector warrants caution, as it has become one of the largest lending segments for several financial institutions after home finance.
However, he is not overly concerned about the sector’s overall risk, as he does not expect a sharp correction in gold prices given the current global environment.
Gold held as collateral provides lenders with a degree of security, making the risk manageable.
While he expects the broader systemic impact to remain limited, Ravuri advised investors to be cautious when selecting gold finance stocks amid the sector’s rapid expansion.
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Telecom sector outlook remains positive as ARPU rises, says Bajaj Life Insurance CIO
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