The Hindu Business Line : Idea to break even next quarter

IDEA Cellular Ltd on Tuesday said that it would break even during the next quarter and its revenues would double in the current fiscal, helped by the company's acquisition of Escotel Mobile.

"We will break even in the next quarter... Our revenues by the end of this fiscal will be around Rs 2,500 crore to Rs 2,600 crore," said Mr Vikram J. Mehmi, Chief Executive Officer.

Talking to Business Line at the sidelines of a press conference, Mr Mehmi said the acquisition of Escotel earlier this year would bring in about Rs 500-crore revenue to the company.

Idea Cellular bought Escotel in January this year for Rs 1,150 crore, marking one of the biggest deals in Indian telecom industry. From Tuesday, Escotel brand in Kerala will become Idea. "Our aim is to become the number two cellular operator in India as early as possible," Mr Mehmi said.

Asked about the proposed initial public offer (IPO) of Idea, he said the plan has been put on hold in the wake of AT&T selling its 33 per cent stake in the company to Temasek Holding companies, Singapore Technologies, Telemedia Pte and Telekom Malaysia.

"We can't go ahead with the IPO when our shareholding pattern is being realigned," he said. Idea's proposed investments will come from promoters as well as by ploughing back profits.

Mr Mehmi said the company would now be investing Rs 104 crore in Kerala circle to double its coverage in the State.