Idea profit up 29% at Rs 308 cr

The company would distribute 3% dividend - a payout of Rs 116 cr, including dividend distribution tax

After a quarter of good volume growth in minutes, coupled with stable rates, Idea Cellular on Thursday announced its maiden dividend to shareholders, after 16 years of operations. According to a decision by the company’s board, yet to be vetted by shareholders, the company would distribute three per cent dividend — a payout of Rs 116 crore, including dividend distribution tax.

The company’s consolidated net profit for the quarter ended March rose 29 per cent to Rs 308 crore, compared with Rs 239 crore in the year-ago period, while total income rose 13 per cent to Rs 6,061 crore. For the year ended March, Idea’s net profit rose 39.6 per cent to Rs 1,011 crore, against Rs 723 crore in 2011-12.

‘I-T notice erroneous’
According to Press Trust of India, Idea termed a notice to it by the Income Tax Department “erroneous”. Managing Director Himanshu Kapania said, “The company believes no tax is applicable... we have appealed at appropriate forums for squashing the demand.”