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| Idea earmarks Rs 6,000-cr capex for two years |
| Press Trust of India / Mumbai Jul 23, 2009, 21:17 IST |
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Private telecom operator Idea Cellular has planned a capital expenditure of about Rs 6,000 crore for the next two years, a top company official said today.
"The company has a borrowing capacity of Rs 9,500 crore. But so far, we are only going to borrow Rs 6,000 crore, which is our immediate requirement for the next two years," Idea Cellular Managing Director Sanjeev Aga told reporters here.
He did not comment on the company's plan for venturing into 3G, saying there was not much clarity on the issue.
Idea today reported a marginal 1.4 per cent increase in profit after tax (on a standalone basis) at Rs 307.5 crore for the first quarter over the same period a year ago.
Revenue for Q1 went up by 0.9 per cent at Rs 2,888.3 crore.
"The last six months have witnessed extraordinary entry pricing from various new competitive launches. There is a sector over-capacity, hyper-competition and the eventuality of a shake-out," Aga said.
He cautioned that the number of telecom players may reduce to single digits from 15 entities at present.
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