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Idea posts net losses for Q4, FY 2017

IANS  |  Mumbai 

Telecom services provider of the on Saturday reported a net loss Rs 328 crore for the fourth quarter (Q4) and net loss of Rs 400 crore for fiscal 2016-17 (FY 2017) on standalone basis.

The net loss in Q4 is against Rs 452 crore standalone net profit posted for like period (Q4) a year ago and Rs 2,728 crore net profit for the previous fiscal 2015-16.

In a regulatory filing on the BSE, the city-based telco said revenue from operations for the quarter under review (Q4) declined 14.3 per cent year-on-year (YoY) to Rs 8,126 crore from Rs 9.478 crore in same period year ago.

"For the fiscal under review (FY 2017), operational revenue was, however, flat at Rs 35,576 crore as against Rs 35,949 for FY 2016.

Sequentially, net loss for Q4 (Rs 328 crore) declined from net loss of Rs 384 crore posted for third quarter (Q3).

The Birla group, however, merged its telecom business (Idea) with the Indian arm of the British telecom major Vodafone Plc in a $23-billion deal on March 20, to create the world's largest and the country's second-largest telco, with 400 million customers and 40 per cent revenue market share.

The merger is expected to be completed by 2018.

"The Indian wireless industry witnessed an unprecedented disruption in the second half (October-March) of the fiscal under review (FY 2017) due to free voice and mobile data promotions by the new entrant (Reliance Jio)," said the company in a statement later.

Terming the interval between October 2016 and April 2017 as a period of telecom discontinuity due to changing mobility business parameters, the company said its revenue KPIs (key performance indicators) and financial barometer had sharply declined for all mobile operators.

"For the first time, the flourishing Indian mobility industry is trending towards an annual revenue decline of 2 per cent in FY17 (vs FY16). With the new entrant starting to charge for its services, albeit slowly, the sector is expected to return to growth in the next fiscal year.

Admitting that Idea's performance in the quarter under review (Q4) was under stress due to the upheaval in the industry, the company said its revenue from operations dropped to Rs 8,126 crore, a sequential decline of 6.2 per cent on the back of 6.9 per cent decline in the third quarter over the second quarter.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, May 13 2017. 20:22 IST