Idea's key operating metrics remain weak; merger with Vodafone soon

Idea registered a capex of Rs 9.8 billion in 1Q19, which is negligible compared Rs 78.7 billion incurred by Airtel and Rs 175 billion by Jio during the same period

Even though Idea Cellular has surprisingly reported a net profit of Rs 2.57 billion for the June quarter due to a one-time gain from the sale of its tower assets, key performance metrics of the company remain weak.

The Aditya Birla Group company, which will soon be merged with Vodafone India, has seen deterioration in revenues, operating profit, margins and average revenue per user (ARPU). 

In fact, its ARPU of Rs 100 is the lowest in the industry as compared to Rs 102 of Vodafone, Rs 105 of Bharti Airtel and Rs 135 of Reliance Jio. 

Analysts say that it will be very