Idea Cellular after trading hours on Thursday, 1 August 2013, said its net profit jumped 143.8% to Rs 482.90 crore on 18% growth in total revenue to Rs 6535.50 crore in Q1 June 2013 over Q1 June 2012. The multiple drivers of this sharp profitable growth have been robust 'Voice' and 'Mobile Data' revenue coupled with scale benefits and better cost management, Idea Cellular said. The net profit was also boosted by dividend income of Rs 83.80 crore from Indus Towers.
Earnings before interest, taxation, deprecation and amortization (EBITDA) jumped 43% to Rs 1843.60 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin surged to 28.2% in Q1 June 2013, from 23.3% in Q1 June 2012.
Idea Cellular said that the company revised the life of some fixed assets to 10 years from 13 years in Q1 June 2013. This change in depreciation policy resulted in a higher depreciation of about Rs 180 crore in Q1 June 2013. The company said that the total impact of the change in depreciation policy for the entire year i.e. for the year ending 31 March 2014 (FY 2014), will be about Rs 450 crore.
With consistent network investment, market place agility, customer centricity and emphasis on building world class Indian brand, Idea Cellular remains on course for performance driven leadership in the mobile business, the company said in a statement. The company's strong balance sheet gives the management confidence to overcome the current volatile and uncertain phase of Indian wireless business and benefit from emerging triple play telecom opportunities in Voice, Data and Video, it said.
Meanwhile, Idea Cellular's board of directors has approved raising up to Rs 3000 crore from placement of equity shares to qualified institutional buyers. The board has also approved raising up to Rs 750 crore from preferential issue of equity shares to Axiata Group Berhad (or its nominee entity). The timing, pricing and exact quantum of equity shares to be issued are to be decided by the Securities Allotment Committee, a Committee of the Board of Directors, mandated for the purpose.
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