Idea Cellular reports two-fold jump in Q2 net profit
Idea Cellular, one of the largest telcos in India, has reported a more than two-fold increase in its net profit for the September quarter.
Net profit jumped to Rs 240 crore in the three months to September 30, from Rs 105.76 crore in the corresponding period of previous year.
The Aditya Birla group company's total revenue jumped from Rs 4,619.92 crore to Rs 5,314 crore over the same period.
Helped by a dividend income of Rs 154 crore from its stake in the telecom towers firm Indus Towers, Idea Cellular's standalone net profit jumped from Rs 79 crore to Rs 352 crore. EBITDA (earnings before interest, tax, depreciation & amortization) margin improved 0.3 per cent to 23.6 per cent.
However, the company disappointed analysts by reporting a steep decline in the usage in terms of call minutes, and flat average realization per minute (ARPM).
The minutes of usage dropped 4 per cent in the quarter. Idea Cellular Managing Director Himanshu Kapania attributed the drop in the usage to fall in rural demand and trade schemes.
The company added six lakh subscribers to the emerging data subscribers and gained the same number subscribers on the 3G front. The company now has 18.9 million data users, 3.7 million of which are active on the 3G platform. However, the average realised rate per megabyte fell to 31.7 paise during the September quarter from the 32.8 paise in the quarter ended June 30.
Shares in Idea Cellular jumped 0.49 per cent to close at Rs 81.25 apiece on the Bombay Stock Exchange (BSE) on Monday.