Idea Cellular’s consolidated net profit more than doubled to Rs 240 crore in the second quarter ended September, given an improved performance.
The GSM operator had posted a net profit of Rs 105.76 crore during the same quarter of the previous financial year.
The Aditya Birla group company’s total income rose to Rs 5,314 crore, compared with Rs 4,619.92 crore recorded during the same period earlier.
“We have been growing and adding subscribers, which is bringing in revenues. Our EBITDA (operating profits) grew by 23.6 per cent (22.4 per cent), while revenue market share also grew 1.2 per cent,” Idea Cellular Managing Director Himanshu Kapania said.
The minutes of usage increased from 1,06,224 million to 1,25,646 million, while non-voice revenues contributed to 15.6 per cent (13.2 per cent), and revenues from 3G services accounted for 5.4 per cent.
However, average revenues per user declined from Rs 155 to Rs 148 a month during the quarter. Its sequential quarterly revenues slid by 3.4 per cent from Rs 5,538.2 crore recorded in the June quarter. The telecom service provider had a net debt of Rs 10,650 crore as of September end.
The overall wireless telecom business outlook for the quarter remained muted due to headwinds emerging from uncertain regulatory interventions, weak seasonal demand and the continued grim battle for market supremacy.
Licence issue
When asked about the company’s licences in the seven circles that were cancelled by the Supreme Court following the 2G scam, Kapania said he expects these to be settled in the next two months.
“Idea could either participate in the spectrum auction or take it legally,” he added.
During the quarter, Aditya Birla Telecom Ltd, a fully-owned subsidiary, received a dividend of Rs 154.3 crore from Indus Towers, an independent tower firm.
Over 18.9 million of Idea’s 115 million subscriber base use mobile data services, contributing 5.4 per cent of the total service revenue, he added.
On the BSE, its share price closed marginally up at Rs 81.25.