Idea Q2 net slips 88% at Rs 91.46 cr

Idea Q2 net slips 88% at Rs 91.46 cr

25/10/2016 12:16

India’s third biggest telecom player Idea Cellular Ltd has reported that its consolidated net profit for the second quarter ended September 30, 2016 sank by 88 per cent at Rs 91.46 crore as expenses rose.

In Q2 FY 2015-16, the company had posted a consolidated net profit of Rs 762.3 crore, Idea Cellular Ltd said in a filing to the Bombay Stock Exchange (BSE).

Consolidated total revenue climbed 7.2 per cent at Rs 9,300.2 crore in Q2 FY 2016-17 from Rs 8,675.4 crore in the same period a year ago.

Consolidated total expenses jumped 15 per cent at Rs 8,414.4 crore in Q2 FY 2016-17 from Rs 7,320.6 crore in the same period a year ago. One-time depreciation charges of Rs 1,954.3 crore adversely affected the company’s financials in Q2 FY 2016-17.

Consolidated finance costs rose over three-fold to Rs 1,004 crore in Q2 FY 2016-17 from the same period a year ago.

“Higher network running expenses due to accelerated expansion, increased subscriber acquisition and servicing cost, and multiple inflationary pressures resulted in overall operating cost increase,” it said.

Shares of Idea Cellular Ltd fell 2.27 per cent to trade at Rs 75.25 a piece at 11:25 AM IST on the BSE on Tuesday.

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