Idea Cellular, the telecom unit of the Aditya Birla Group, has reported a disappointing 41 per cent fall in consolidated net profit to Rs 105.76 crore in the second quarter of the year compared to Rs 179.74 crore posted in the same period previous year.

Idea's profit-after-tax fell mainly due to higher net interest and finance costs of Rs 253.8 crore on account of third generation (3G) debt and increased manpower costs, it said in a filing to the Bombay Stock Exchange. Interest costs almost doubled to Rs 293 crore from Rs 102 crore in the quarter.

The staff costs of the company increased bu 12 per cent due to a wage revision in the quarter. On the other hand, the company's total income increased to Rs 4,619.92 crore in the quarter from Rs 3,659.19 crore from the second quarter of 2010.

When considered on the stand alone basis, the company recorded a net profit of Rs 73.94 crore in the quarter compared to Rs 165.98 crore for the same period last fiscal. The shares of the compoany were trading down 1.39% at Rs 91.95 on the BSE.

"The second quarter is a seasonally weak quarter. With a higher proportion of rural subscribers coming in this quarter, the seasonality becomes more pronounced," said Himanshu Kapania, managing director.