Idea Cellular Q2 profit more than doubles to Rs 240 cr

Idea Cellular today reported over two-fold rise in consolidated net profit to Rs 240 crore for the second quarter ending September 30, 2012.

The company had posted a net profit of Rs 105.76 crore for the same period a year ago.

Total revenue of the company increased by 15% to Rs 5,314 crore during the reported quarter, compared to Rs 4,619.92 crore in the corresponding period last fiscal.

"With the increasing proportion of rural subscribers, the seasonal slowdown in the second quarter has become more pronounced resulting in sharp contraction in the 'Voice Minutes of Use' by 4%, to 125.6 billion minutes compared to 130.9 billion minutes in Q1, FY13," Idea said in a statement.

"Company's 3G investment plans are on track and high speed broadband services are now available in 3,500 towns (census and non-census) in 20 service areas (including roaming arrangements)," the statement said.

The company said that its overall wireless telecom business outlook for the quarter "remains muted" due to headwinds emerging from uncertain regulatory interventions, weak seasonal demand and continued grim battle for market supremacy.

"The capex of Rs 972 crore, excluding forex fluctuation, for the quarter has been funded entirely out of cash profit of Rs Rs 1,231 crore," the statement said.