Idea Q1 Net almost doubles to Rs 463cr,board okays share issue

Telecom operator Idea Cellular today said it has nearly doubled consolidated net profit at Rs 462.71 crore in the first quarter ended June 30, 2013, on the back of robust voice and mobile data revenue.

The company registered net profit of Rs 234.14 crore during the same period a year ago.

"The multiple drivers of this sharp profitable growth have been robust voice and mobile data revenue coupled with scale benefits and better cost management," Idea Cellular said in a statement.

The consolidated revenues of the company increased 19% to Rs 6,538.77 crore during the reported quarter from Rs 5,503.69 crore posted in corresponding period of last fiscal.

Idea said its minutes of voice calls increased by 12.5% on year-on-year basis to 147.3 billion in Q1 of FY 2013-14, supported by net annual new customer addition of 7.8 million and cumulative subscriber base reaching 125 million as on June 30, 2013.

The 'Interest and Finance Cost (net) was lower by Rs 9.5 crore, even after accounting for foreign currency exchange rate loss of Rs 2.3 crore.

The company's net debt reduced from Rs 11,588.1 crore in Q4, FY13 to Rs 10,219.9 crore in the reported quarter.

"Net Debt to annualised EBITDA (an indicator of cash flow) level now is at an enviable 1.39, by far the lowest in the industry," the statement said.

In a separate filing to the BSE, the company said that its board has approved raising up to Rs 3,000 crore from qualified institutional investors by issuing company's equity shares.

The board has also approved issuing company equity shares worth up to Rs 750 crore on preferential basis to Axiata Group Berhad, the company said.

Shares of Idea today closed at Rs 167.35 apiece, down nearly 1% on the BSE.