Telecom equipment maker Ericsson on Friday reported a 53% year-on-year (y-o-y) decline in revenue from its India operations to 14.87 billion Swedish crowns (approximately Rs 11,732 crore) in 2024, according to the company’s earnings report. The drop is attributed to the reduced capital expenditure by telecom operators.
In the October-December quarter, Ericsson’s sales in India fell over 49% y-o-y to 2.91 billion Swedish crowns (around Rs 2,295 crore), marking the fifth consecutive quarter of declining sales in the country. Sequentially, sales dipped by 5.8%.
Until the July-September quarter of 2023, Ericsson had experienced record sales in India due to increased investments by telecom operators in the rollout of 5G networks.
“Sales in the other market areas decreased materially, particularly in market areas South East Asia, Oceania, and India, as operator capex investments in India normalised after a record 2023,” Ericsson stated in a statement.
Despite India remaining Ericsson’s second-largest market, the country’s share in the company’s global sales dropped to 6% in 2024 from 12% in 2023. In the October-December quarter, India’s contribution to global sales fell further to 4%, compared to 8% in the same period of 2023.
Ericsson continues to supply network equipment, including 5G Radio Access Network (RAN), to major Indian telecom operators such as Reliance Jio, Bharti Airtel, and Vodafone Idea. During the quarter, Bharti Airtel awarded Ericsson a multi-year contract extension for 4G and 5G RAN in India. Additionally, Vodafone Idea awarded a contract for 4G network expansion and 5G rollout.
Globally, Ericsson’s total sales in 2024 fell 6% y-o-y to 247.9 billion Swedish crowns (approximately Rs 1.9 lakh crore). However, in the October-December quarter, sales rose 1% y-o-y to 72.9 billion Swedish crowns (around Rs 57,521 crore).
Ericsson’s net profit globally saw a significant rise of 43% y-o-y in the October-December quarter, reaching 4.9 billion Swedish crowns (approximately Rs 3,866 crore).
