Idea Cellular drops after Q2 results

Idea Cellular lost 1.48% to Rs 172.60 at 9:16 IST on BSE after profit after tax rose 13.2% to Rs 398.50 crore in Q2 September 2013 from Rs 351.90 crore (despite including Rs 154.30 crore dividend from Indus) in Q2 September 2012.

The Q2 result was announced after trading hours on Thursday, 24 October 2013.

Meanwhile, the S&P BSE Sensex was down 65.38 points or 0.32% at 20,660.05.

On BSE, 15,000 shares were traded in the counter as against average daily volume of 5.94 lakh shares in the past two weeks.

The stock hit a high of Rs 176 and a low of Rs 171.40 so far during the day.

Idea Cellular's revenue jumped 18.1% to Rs 6317 crore in Q2 September 2013 over Q2 September 2012. Revenue growth and scale benefit translated into healthy EBITDA margin of 27.6% in Q2 September 2013. EBITDA margin registered year-on-year (YoY) improvement by 4%, the company said.

The company's consolidated profit after tax (PAT) jumped 86.5% to Rs 447.60 crore in Q2 September 2013 over Q2 September 2012. Revenue, including 16% Indus contribution rose 19% on YoY basis in Q2 September 2013. The consolidated EBITDA margin of 31.2% in Q2 September 2013 is a YoY improvement of 4.4%, Idea Cellular said.

As competitive intensity in the telecom sector declines and as the overcapacity phase comes to an inevitable end and also as visibility of spectrum quantum and pricing improves, Idea Cellular expects to further consolidate its position in the telecom voice and data market, the company said in a statement.

Idea Cellular, part of the Aditya Birla Group, is the third largest listed wireless operator in India.

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