Impacted by the ongoing disruption in the telecom sector, Idea Cellular, the country’s third largest telecom operator, has posted a consolidated net loss of Rs 326 crore for the fourth quarter ended March 31. In comparison, the Aditya Birla group company had posted a net profit of Rs 449 crore during the comparable period a year ago.
For the quarter under review, the company’s total consolidated revenue fell to Rs 8,194.5 crore, compared with Rs 9,600 crore recorded during the year-ago quarter, the company said in a regulatory filing.
For Idea Cellular, this is the second consolidated loss in a row, as the company had posted a consolidated net loss of Rs 383.87 crore compared to a net profit of Rs 659.35 crore in December quarter.
On a standalone basis, the company posted a net loss of Rs 326 crore, on a total revenue of Rs 8,126 crore.
“The Indian wireless industry witnessed an unprecedented disruption in the second half of financial year 2016-17 (FY17) on account of free voice and mobile data promotions by the new entrant in the sector. The October to April 2017 interval can be best described as ‘Period of Telecom Discontinuity’, permanently changing mobility business parameters,” the company said in a statement.
Consequently, the revenue key performance indicators and financial parameters for all mobile operators have sharply declined in H2FY17. For the first time in its history, the flourishing Indian mobility industry, is trending towards an annual revenue decline of about 2 per cent in FY17 (vs FY16), it said.
“With the new entrant starting to charge for its services, albeit very slowly, the sector is expected to return to growth in the next financial year,” the company said, without naming the new entrant.
On March 20, 2017, Vodafone Group and Idea Cellular had agreed to combine their operations in India (excluding Vodafone’s 42 per cent stake in Indus Towers) to create India’s largest telecom operator. The companies have initiated necessary steps to obtain regulatory approvals.
rajesh.kurup@thehindu.co.in