Nokia's India net sales fall 6% on-year to ₹3,148.05 crore in Q2FY25
Nokia
reported a 6% year-on-year decline in its India net sales to 310 million euros (~₹3,148.05 crore) in the second quarter of fiscal year 2025 (Q2FY25), mainly dragged by a fall in its mobile networks business.
Nokia, which follows the January-December financial year, had posted net sales of 329 million euros in Q2FY24 for the India market.
'Net sales in Asia Pacific (APAC) decreased in the second quarter, driven by declines in Mobile Networks, particularly in Greater China and India. Network Infrastructure (NI) saw broad-based growth across APAC. Cloud and Network Services saw growth in India and Rest of APAC which was offset by a decline in Greater China,' the vendor said in its earnings statement released on Thursday.
This is in sharp contrast with its Swedish rival Ericsson, which has reported a 28% year-on-year fall in sales in the market area South East Asia, Oceania and India at 5.5 billion crowns (~₹4,917 crore) in the April-June 2025 quarter, weighed down by a pause in fifth-generation (5G) network investments by Indian telecom carriers.
India, however, remained second among the top five countries by sales at 6% in the January to June period of 2025 for Ericsson, a company spokesperson told
ET
earlier.
Nokia's mobile networks' net sales slid by 17% year-on-year in Q2FY25, primarily due to a decline in the Americas, and to some extent, APAC, while Europe, the Middle East and Africa (EMEA) grew slightly.
'Mobile Networks' net sales declined 13%, primarily related to the prior year settlement benefit and also due to project timing in India,' Justin Hotard, president & CEO, Nokia, said in the earnings statement.
Nokia's cloud & network services net sales increased by 10% year-on-year in Q2FY25, mainly driven by core networks. 'In APAC, growth in Asia Pacific and Japan along with India was partially offset by a decline in Greater China,' it said.
The network infrastructure net sales were up by 25% year-on-year in the fiscal second quarter of 2025, which included a full quarter of Infinera's financials.
Nokia's network infrastructure business comprises its home broadband and optical transmission equipment business, which serves mostly enterprises, governments and webscalers, among others, while mobile networks involve supply of telecom equipment for telcos' retail network such as 4G and 5G.
READ MORE | Ericsson's sales in South East Asia, Oceania & India slump by 28% on-year in Q2FY25
Nokia lowers full year operating profit outlook
Nokia's overall sales grew slightly by 2% year-on-year to 4,546 million euros in Q2FY25.
'We are facing two headwinds to our full year operating profit outlook, which are outside of our control: currency due to the weaker US Dollar, and tariffs. The currency has an approximately 230 million euros negative impact relative to our expectations at the start of the year, with 90 million euros resulting from non-cash venture fund currency revaluations,' Hotard said.
He added that the current tariff levels are forecasted to impact operating profit by 50 million euros to 80 million euros, inclusive of those in Q2.
'Considering these two headwinds, we decided it was prudent at this point to lower our comparable operating profit outlook to a range of 1.6 billion euros to 2.1 billion euros from the prior range of 1.9 billion euros to 2.4 billion euros,' the chief executive said.
In India, Ericsson along with Nokia and South Korean Samsung, have commercial 5G deals with top telecom carriers
Reliance Jio
, Airtel, and
Vodafone Idea
(Vi).
While Vi switched on its commercial 5G services in March, and is currently focused on expansion in 17 priority circles by August, its peers Jio and Airtel already have nationwide 5G networks and provide 5G FWA to customers.
Earlier, Ericsson and Nokia saw a surge in India sales from the fourth quarter of 2022 and first quarter of 2023, respectively, shortly after Airtel and Jio began rolling out 5G networks nationally from October 2022. However, both telcos have concluded their 5G network deployments in the first half of 2024 and are now focused on boosting revenues and driving monetisation of their 5G businesses.
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