Idea Cellular results spur market keenness for merger with Vodafone

Idea says the merger is on track and likely to be complete by May-June

As Idea Cellular has reported weaker than expected numbers for the quarter ending December, analysts now expect the planned merger with Vodafone to be a saviour for the Aditya Birla Group company.

Its revenue dropped 12.8 per cent from the earlier quarter, to Rs 65.5 billion. Losses ballooned to Rs 12.8 billion.  

There were positive signs in the form of subscriber addition and reduction in churn rate. Analysts feel, though, there are multiple fronts where Idea needs to fight, such as capital expenditure, market share defence and balance sheet repair.

“As pressure in the sector continues to mount, synergies from the merger —