Idea tanks 6%; mcap dips Rs 2,141 cr on poor Q1 show

Shares of telecom operator Idea Cellular ended nearly 6 per cent lower today, wiping-out Rs 2,141 crore from its market valuation, after the firm reported a sharp decline of 74.5 per cent in consolidated net profit for three months period ended June 30.
The scrip tanked 5.77 per cent to settle at Rs 97.15 on BSE. During the day, it lost 6.35 per cent to Rs 96.55.
At NSE, shares of the company went down by 5.77 per cent to end at Rs 97.15.
The stock was the worst hit among the 50-Nifty scrips.
The company's market valuation dipped by Rs 2,141.11 crore to Rs 34,982.89 crore.

On volume front, 18.90 lakh shares of the company were traded on BSE and over two crore shares changed hands on NSE during the day.

Idea Cellular yesterday reported a sharp decline of 74.5 per cent in consolidated net profit at Rs 217 crore for three months period ended June 30, largely on account of spectrum purchase.
The company had posted a profit of Rs 851.6 crore in the same quarter a year ago.
Idea Cellular however maintained that the financial results are not comparable due to one-time payment related to spectrum purchase.
The financial performance of reported quarter includes "full impact of spectrum acquired by Idea in March 2015 (Rs 30,140 crore investment) and February 2014 Auction (Rs 10,420 crore investment) for renewal of mobile licences in nine service areas expired between December 2015 and April 2016 as well as spectrum acquired for 3G and 4G services in multiple circles.

The total revenue of Idea Cellular increased by 7.9 per cent at Rs 9,486.64 crore in the reported quarter compared to Rs 8,791.54 crore a year ago.