Idea Cellular reported a 19.4 per cent dip in consolidated net profit at Rs 723 crore for the year ending March 31, 2012. The drop was on account of higher depreciation and interest charges due to “front loaded 3G investments.”
For the March quarter, Idea's net profit stood at Rs 239 crore against Rs 274.5 crore reported in the corresponding quarter last year.
Revenues were up 26 per cent to Rs 19,541 crore (Rs 15,503 crore). The revenue growth in this quarter was due to the growth in voice minutes to 124 billion against 114 billion (December 2011). This was supported by 6.4 million VLR subscriber additions in the quarter.
“The capex for FY12 was Rs 3,600 crore and the capex projection for FY13 is Rs 3,500 crore, excluding payment for spectrum. This will be used for expansion in all segments as well as expansion for the future of the 3G business. There was a mark to market forex gain of Rs 110 crore,” said Mr Akshaya Moondra, Chief Financial Officer, Idea Cellular.
The company's 3G investment plans are on track and its high-speed broadband services are now available across 3,000 towns, 10,000 villages, in 20 service areas (including roaming arrangements) in India, said a release from the company.
Idea has seen a growth in the ‘non-voice revenue' or the Value Added Services (VAS) which contributed to 14.3 per cent revenue in the fourth quarter against 13.7 per cent in December 2011. “We will continue to remain focussed on this segment. We had an ARPU of Rs 155 in the second quarter of FY12. This has increased to Rs 160 in the fourth quarter,” said Mr Himanshu Kapania, Managing Director, Idea Cellular
“The uptrend of Average Realisation Per Minute (ARPM) was halted with decline in ARPM to 42.2p from 43.3p, a harsh reminder of the market place battle and overcapacity,” the Idea statement said. Idea did not agree with TRAI's recommendation on the increase in reserve price for the spectrum. “It is inconsistent and arbitrary,” said Mr Kapania. He also said that this would push the telecom sector back and would not be in sync with the vision of 2012. He said that the company would continue to agitate against the recommendation.
The telecom provider has 113 million subscribers and added 22.3 million subscribers in this quarter.
The Idea stock closed at Rs 83.30, up 4 per cent from its previous close on the BSE.