The Hindu Business Line : Idea net down 14.7%

Mumbai, July 24 Expiry of concessions available on licence fee coupled with foreign exchange losses related to the rupee depreciation caused the GSM mobile operator Idea Cellular to post a 14.7 per cent dip in consolidated net profit for the quarter ended June 30.

The Aditya Birla group company’s net profit was down to Rs 263.1 crore as against Rs 308.5 crore reported in the same quarter a year ago.

Net profit was negatively impacted by Rs 30 crore due to the expiry of the period of 2 per cent concession in licence fee for seven service areas, according to a news release from Idea Cellular. (This was available to incumbent GSM operators – first two operators in each circle – till the previous fiscal.)

Moreover, during this quarter, loss on account of foreign exchange fluctuation was Rs 15.2 crore against a gain of Rs 32.9 crore in the previous sequential quarter.

The foreign exchange losses were largely on account of vendor payments made by the company for import of telecom equipment.

Total revenues for the quarter were up by 47.4 per cent to Rs 2,178.1 crore (Rs 1,477.5 crore).

The Pune-based firm added 3.19 million users during the period, taking its overall subscriber base to 27.19 million.

Reacting to the development, the Idea Cellular scrip on Thursday hit an intra-day low of Rs 84.35, before settling at Rs 87.65, 3.84 per cent lower than the previous close on the BSE.

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