Idea Cellular Q3 profit shows marginal decline at Rs 764.21 crore
Telecom operator Idea Cellular reported on Thursday a marginal decline in consolidated net profit at Rs 764.21 crore for the third quarter of 2015-16.business Updated: Jan 21, 2016 19:14 IST
Telecom operator Idea Cellular reported on Thursday a marginal decline in consolidated net profit at Rs 764.21 crore for the third quarter of 2015-16.
The company had posted a net profit of Rs 767.06 crore for the same period a year ago.
The net sales of the company increased by 12.37% to Rs 9,009.69 crore during the reported quarter, from Rs 8,017.47 crore in the corresponding period of 2014-15.
A sharp 75.8% growth in mobile data (2G, 3G, 4G) and 16.7% expansion in voice minutes drove the revenue growth in the quarter, Idea Cellular said in a statement.
However, decline in ‘voice realised rate’ at 10.6% (including impact of interconnect usage charge regulation) and mobile data realised rate at 17.2% depressed overall “gross revenue” growth, it added.
During the quarter, Idea launched 3G service on its own network in 13 circles. It also launched its 4G services in four south Indian telecom service areas.
“The data ARPU (average revenue per user) of a 3G Data customer is at a healthy level of Rs 196 during third quarter of FY 2016, in addition to customer spend on voice and non data value added services,” the statement said.
“The capex spend in the third quarter of financial year 2016 of Rs 23,135 million was financed by cash profit of Rs 23,493 million for the quarter,” the statement said.
The company’s net debt increased by more than three-fold to Rs 37,690 crore, from Rs 11,089.1 crore it had reported at the end of the corresponding quarter a year ago.
“The net debt, now at Rs 376.9 billion, includes almost all deferred payment liability from past spectrum auctions, including March 2015 auction,” the statement said.
The rise in debt also led to increase in finance cost of the company to Rs 346.51 crore in the third quarter from Rs 204.05 crore during the period.