Idea Cellular records 18 per cent fall in net profit in third quarter

Idea Cellular records 18 per cent fall in net profit in third quarter Telecom service provider, Idea Cellular has recorded a fall of 18 per cent in its consolidated net profit to Rs 200.9 crore in the third quarter till December 2011 mainly due to higher depreciation and financing costs in 3G services.

Idea Cellular, which is a Aditya Birla Group firm, had reported a net profit of Rs 243 crore in the October-December quarter of 2010, the company said in a filing. The company's total income increased to Rs 5,030.8 crore in the quarter compared to Rs 3,955.6 crore for the quarter ended December 31, 2010, recording an increase of 27 per cent.

"The business outlook remains a paradox, a combination of tailwinds with strong customer traction and headwinds emerging from uncertain regulatory interventions and the macroeconomic environment," it said.

The company has said that it's 3G plans are on track and it now offers high-speed broadband services across 2,300 towns in 20 service areas. Idea Cellular further said that it is confident that it will come out from the current uncertain regulatory environment and consolidate its position in the market to improve performance.

The standalone net profit for the company fell 26 per cent to Rs 162.89 crore for the quarter till December 31, 2011 compared to Rs 221 crore in the same period previous year. Shares of Idea Cellular increased 4.57 per cent to Rs
88.15 on the Bombay Stock Exchange (BSE).