Ericsson India Sales Rise Eighty One% In Q3
Global telecom gear major Ericsson has registered its highest ever sales growth of 81% in India during three months to September, driven by higher investments in mobile broadband service.
India has also proved to be a fastest growing market in terms of sales for the company as compared to other countries where it is operating.
The Indian arm of Ericsson registered net sales of 3.6 billion Swedish Krona (SEK) or Rs 2,769 crore, calculated at the exchange rate of 7.63, in the reported quarter as compared to SEK 2 billion, (1,525 crore) it reported in corresponding quarter a year ago.
“The high level of mobile broadband investments, which started in the beginning of 2015, continued in the quarter with the main driver being mobile data traffic growth,” Ericsson said in its financial report today.
Ericsson witnessed 120% growth in sales of telecom network equipment in India at SEK 2.4 billion or Rs 1,856 crore on year-on-year basis, the report said.
Ericsson global services division business grew by 46% to SEK 1.08 billion or Rs 825 crore while its support solution business declined by 26% to SEK 112 million or Rs 85 crore on y-o-y basis, the report added.
The company did not disclose break-up of its net income at country level. At group level the net income of the company increased 19% at SEK 3.1 billion as compared to SEK 2.6 billion during the period under review.
Globally, Ericsson reported 3% growth in net sales at SEK 59.2 billion in the reported quarter as compared to SEK 57.6 billion in same period a year ago.
Sales growth for Ericsson remained strong in India as well as in South East Asia and Oceania as compared to the same period last year, while sales declined in North East Asia as well as in Northern Europe and Central Asia, Ericsson said.
The sales gap between India and China during the reported quarter also reduced with India market contributing to six per cent from four per cent a year ago in global net sales of Ericsson. China’s contribution increased to 7% from 6% in Ericsson’s net sales during period under review.
Ericsson’s increased its headcount in India to 21,343 at the end of September from 19,413 a year ago.