 "India lifts Ericsson sales in Q3")
Ericsson, the Swedish telecom equipment maker, has reported a 56% jump in revenue from Indian operations during the July-September quarter. Revenue growth in India, which accounts for just about four per cent of the company's total sales, is the highest worldwide, followed by West Asia (38%) and North East Asia (16%).
Revenue in India increased to 2 billion (SEK) Swedish Kronor or Rs 1,685 crore in the July-September 2014 quarter, from 1.28 billion SEK in the same quarter previous year. With 56% revenue growth in the third quarter, India has moved up to fourth position behind the US, China and Japan.
"Since the end of last year, sales in the region has recovered, mainly driven by an increase in operator capital expenditure spending in response to greater data uptake. The year-on-year growth in support solutions is driven by OSS and BSS (software solutions for telecom network management) and TV & media," Ericsson said in a statement.
According to the company statement, growth in India, China, West Asia and Russia helped Ericsson to grow its global revenue to 57.6 billion Swedish kronor ($7.94 billion) in the quarter, up nine per cent from 53 billion kronor a year ago.
However, Ericsson's net income declined 13% to SEK 2.6 billion in July-September quarter from SEK 3 billion in the same period last year.
"The sales growth year-over-year was mainly driven by the Middle East (West Asia), China, India and Russia, but was partly offset by lower sales in North America," Ericsson President and CEO Hans Vestberg said, in a statement, adding "Furthermore, the investment climate in India continues to improve."
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Since end of last year, Ericsson said, sales in the India region has recovered, mainly driven by an increase in operator capex spending in response to greater data uptake.