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Idea records loss in Q2 of FY11
By siliconindia
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Tuesday, 26 October 2010, 22:38 IST
Bangalore: Idea incurred loss in its net profit during the second quarter of the year with 
180 crore as its net profit compared to 201 crore of its first quarter of the fiscal year. The percentage of decline was about 10.5 percent. 8 percent was the average revenue per user which sums up to Rs 167 against Rs 182 in the last quarter.
Sanjeev Aga, MD, Idea Cellular, said, "The rate pricing has come down and we expect the pricing to be flat in the coming quarters. The second quarter has a lower seasonal demand and therefore, we have seen an impact." In the last quarter the rate dropped from 45 paise to 42 paise and the minutes of usage rose 84,828 million from 82,274 million. Shares of the company on the BSE closed at Rs 71.80, down 1.85 percent on Monday.
Idea will soon launch 3G services by the first quarter of the next calendar year. They are in talks with big operators so that they can bag the areas where 3G spectrum was previously not introduced. Idea has spectrum in 11 circles for which it paid Rs 5,700 crore. Idea has a 2G and 3G capex of Rs 4000 crore for the financial year 2010-11, of which Rs 800 crore has been invested and Rs 3,200 crore will be invested in the second half of the FY11. "Of this Rs 3,200 crore, Rs 1,400 crore will be funded through internal accruals and Rs 1800 crore through debt, said Akshaya Moondra, CFO, Idea Cellular. This is excluding interest of Rs 120.7 crore which the company has capitalized during the quarter against the license fee for spectrum. The company has also committed a capex of Rs 3000 crore for the next 12-14 months of the launch of 3G services. "Currently we have $1 billion of undrawn facilities and Rs 5000 crore as cash surplus,"Moondra added. Idea currently has a net debt of about Rs 9251 crore with a debt to equity ratio of 0.79.
180 crore as its net profit compared to 201 crore of its first quarter of the fiscal year. The percentage of decline was about 10.5 percent. 8 percent was the average revenue per user which sums up to Rs 167 against Rs 182 in the last quarter.
Sanjeev Aga, MD, Idea Cellular, said, "The rate pricing has come down and we expect the pricing to be flat in the coming quarters. The second quarter has a lower seasonal demand and therefore, we have seen an impact." In the last quarter the rate dropped from 45 paise to 42 paise and the minutes of usage rose 84,828 million from 82,274 million. Shares of the company on the BSE closed at Rs 71.80, down 1.85 percent on Monday.
Idea will soon launch 3G services by the first quarter of the next calendar year. They are in talks with big operators so that they can bag the areas where 3G spectrum was previously not introduced. Idea has spectrum in 11 circles for which it paid Rs 5,700 crore. Idea has a 2G and 3G capex of Rs 4000 crore for the financial year 2010-11, of which Rs 800 crore has been invested and Rs 3,200 crore will be invested in the second half of the FY11. "Of this Rs 3,200 crore, Rs 1,400 crore will be funded through internal accruals and Rs 1800 crore through debt, said Akshaya Moondra, CFO, Idea Cellular. This is excluding interest of Rs 120.7 crore which the company has capitalized during the quarter against the license fee for spectrum. The company has also committed a capex of Rs 3000 crore for the next 12-14 months of the launch of 3G services. "Currently we have $1 billion of undrawn facilities and Rs 5000 crore as cash surplus,"Moondra added. Idea currently has a net debt of about Rs 9251 crore with a debt to equity ratio of 0.79.