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Idea Cellular drops after dismal Q2 outcome

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Capital Market
Last Updated : Oct 26 2016 | 12:01 AM IST

Idea Cellular lost 1.49% to Rs 75.85 at 10:15 IST on BSE after consolidated net profit slumped 88% to Rs 91.46 crore on 8.05% rise in total income to Rs 9535.01 crore in Q2 September 2016 over Q2 September 2015.

The result was announced after market hours yesterday, 24 October 2016.

Meanwhile, the S&P BSE Sensex was down 134.95 points or 0.48% at 28,044.13

On BSE, so far 5.21 lakh shares were traded in the counter as against average daily volume of 9.65 lakh shares in the past one quarter. The stock hit a high of Rs 76.95 and a low of Rs 74.05 so far during the day. The stock had hit a 52-week high of Rs 149.80 on 23 October 2015. The stock had hit a 52-week low of Rs 71.25 on 18 October 2016.

The large-cap company has equity capital of Rs 3601.03 crore. Face value per share is Rs 10.

The consolidated results represents Idea Cellular's standalone and proportionate consolidation of Indus (@16%) and Payments Bank (@49%) at net profit level.

Earnings before interest, taxation, depreciation and amortization (EBITDA) grew 1.8% to Rs 2840.10 crore in Q2 September 2016 over Q2 September 2015 as higher network running expenses due to accelerated expansion, increased subscriber acquisition and servicing cost, and multiple inflationary pressures resulted in overall operating cost increase. EBITDA margin contracted to 30.5% in Q2 September 2016 from 32.2% in Q2 September 2015.

In the recently concluded October 2016 Spectrum auction, Idea acquired 349.2 MHz of spectrum, including 149.2 MHz spectrum in frequency bands of 1800 MHz and 2100 MHz, expanding Idea mobile broadband coverage to Pan India and additional 200 MHz spectrum in frequency bands of 2300 MHz and 2500 MHz to address the future requirement of capacity.

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Idea Cellular is gearing to expand its wireless broadband coverage using the spectrum won in recently concluded spectrum auction and plans to spend incremental equipment capex of Rs 1000 crore in FY17. With this, the capex guidance is revised from an earlier level of Rs 6500-7000 crore to Rs 7500-8000 crore, the company said.

Kumar Mangalam Birla, Chairman, Idea Cellular, said that the company is committed to participate in 'Digital India' mission. Idea is gearing itself for the arrival of a tsunami of mobile broadband users as the company expands its wireless broadband coverage to a billion Indians and supplements the company's broadband capacity at 15-20 times current data traffic on existing and new spectrum, Kumar Mangalam Birla said.

Idea Cellular is the third largest wireless operator in India with a revenue market share of 19.3% as on Q1 June 2016. Idea is part of the Aditya Birla Group, which is one of the largest business groups in India.

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First Published: Oct 25 2016 | 10:10 AM IST

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