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Idea Cellular posts 88pc dip in profit as finance costs and competition bear heavy

Idea Cellular, a part of the Aditya Birla group, today reported an 88 percent decline in its net profit

India TV Business Desk, New Delhi [ Updated: October 24, 2016 19:24 IST ]
Idea Cellular posts 88pc dip in profit

Idea Cellular, a part of the Aditya Birla group, today reported an 88 percent decline in its net profit to Rs 91.5 crore in the July to September quarter due to higher finance costs.

“Net profit fell to Rs 91.5 crore from Rs 762.3 crore in the corresponding quarter of the previous financial year,” according to the company’s filing on the stock exchanges.

Finance costs for the company went up 220.8 percent year-on-year to Rs 1,004.4 crore from Rs 313.1 crore, reports said.

Revenue during the quarter declined 2 percent to Rs 9,300 crore compared with Rs 9,486.6 crore in previous quarter.

 

In the recent spectrum auction, Idea acquired 349.2 MHz of spectrum and expanded spectrum portfolio by over 64 percent. 

According to bloombergquint.com, Idea’s data revenue per megabyte decreased to 18.7 paise from 21.1 paise in the March to June quarter. Average data revenue per user too fell 5.3 percent to Rs 130 per user from Rs 142 per user from the previous quarter.

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