Ericsson India posts 85% rise in Q2 sales

NEW DELHI: Telecom gear maker Ericsson India has recorded a 85% growth in net sales in Q2, 2015, as compared to 29% in the same period last year.

The number of employees engaged in Ericsson India also increased from 18,495 in June, 2014, to 21,353 in June, 2015.

“The resales increased YoY, mainly due to continued mobile broadband investments, driven by growth in mobile data traffic. Global Services sales continued to show a strong development. Sales growth related to mobile broadband deployments in India contributed positively,” a statement said.

Meanwhile, Ericsson has recorded about 10% rise in its net sales to 60.7 Swedish Krona in Q2 of 2015 over the same period last year.

The sales increased by 11% YoY and sales, adjusted for comparable units and currency, decreased by -6% YoY.

Sales in segment networks recovered and showed a growth QoQ of 18%. The gross margin decreased YoY to 33.2% (36.4%), excluding restructuring charges, gross margin was 35.1% (36.6%) due to lower capacity business in North America and continued 4G coverage deployments in Mainland China, lower IPR revenues and higher share of services sales.

“The global cost and efficiency program is progressing according to plan and restructuring charges in the quarter were SEK 2.7 , mainly related to the reductions in Sweden,” the statement said.

Hans Vestberg, President and CEO of Ericsson, said: “Reported sales increased by 11%. Sales, adjusted for comparable units and currency, decreased by -6% YoY, mainly impacted by less capacity business in North America. Profitability improved sequentially, driven by a strong development in segment Networks.”

The mobile broadband business in North America stabilized in the quarter, but remained at a lower level than a year ago.

The YoY decline in North America was partly offset by an increased pace of 4G deployments in Mainland China. Sales growth was strong in the Middle East, India and South East Asia, while it continued to be weak in Japan. Professional Services sales increased YoY with continued strong global demand and growth in all ten regions.

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