Idea cellular Q2 net dips 49%
Higher interest costs, foreign exchange losses due to a depreciating rupee and seasonal factors hit Idea Cellular's profit in the second quarter. HT reports.business Updated: Oct 21, 2011 22:22 IST
Higher interest costs, foreign exchange losses due to a depreciating rupee and seasonal factors hit Idea Cellular's profit in the second quarter.
The company's standalone revenues for the quarter ended September rose 21.5% year-on-year to Rs 4,655 crore against Rs 4556 crore last year.
Its net profit, however, declined sharply by 48.5% year-on-year to Rs 79 crore compared to R154 crore last year. The company attributed it to high interest and finance cost of Rs 254 crore, including a forex loss of R31crore due to a falling rupee towards the end of the second quarter.
Earnings before interest, tax, depreciation and amortization (EBITDA) margins, too, declined by one percentage point during the quarter due to increased losses in new service areas including Mumbai, Bihar, Orissa, Tamil Nadu, J&K, Kolkata, West Bengal, Assam and North East.