Idea Cellular plans Rs 1,300cr capex

Idea Cellular is planning to invest up to Rs 1,300 crore in the current financial year for starting operations in three new circles and expanding services in existing circles.

"We will start services in three new circles - UP (East), Rajasthan and Himachal Pradesh before the end of 2005 taking the total number of circles to 11. We have planned an investment of Rs 1,300 crore in 2005-06," Vikram Mehmi, CEO of Idea Cellular, said.

With the planned investment of Rs 1,300 crore, Idea Cellular's total investment in mobile telephony till now would be about Rs 7,800 crore, Mehmi said, and claimed that Idea has turned profitable since last fiscal.

"We earned net profit last year. The EBIDTA margin of Idea is about 37%," he said but did not divulge the net profit figure saying the company was not a listed company.

Last month, Tatas and the A V Birla group announced their decision to buy out the foreign partner, Cingular Wireless, from Idea Cellular for about Rs 1,300 crore. The deal is yet to be approved by the department of telecommunications.