Impact of Liquidity on Profitability in Telecom Companies
Indian telecom sector has shown a tremendous growth in the last decade and this has attracted more companies into this sector, which has resulted in a cutthroat competition. The Indian telecom sector is in consolidation phase and we have observed some mergers in this sector in recent past. The competition between the telecom players has increased due to the Reliance Jio entry into the market. This has resulted in reduced profits or even losses to some players due the price war. The spectrum prices by the Govt. have also played a role in increasing the stress of telecom players.The findings of this study indicate that the companies’ focus on liquidity management rather than just focusing on profitability.