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Idea Cellular declines after weak Q4 results

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lost 0.65% to Rs 91.70 at 9:20 on after the company reported consolidated net loss of Rs 327.70 crore in Q4 March 2017, compared with net profit of Rs 451.70 crore in Q4 March 2016.

The result was announced on Saturday, 13 May 2017.

Meanwhile, the S&P Sensex was up 129.80 points or 0.43% at 30,317.95.

On the BSE, 2.19 lakh shares were traded on the counter so far as against the average daily volumes of 53.26 lakh shares in the past one quarter. The stock had hit a high of Rs 93.25 and a low of Rs 91.30 so far during the day.

The stock had hit a 52-week high of Rs 123.75 on 20 March 2017 and a 52-week low of Rs 66 on 9 November 2016. It had outperformed the market over the past one month till 12 May 2017, advancing 6.46% compared with the Sensex's 1.84% rise. The scrip had, however, underperformed the market over the past one quarter, declining 16.36% as against the Sensex's 6.54% rise.

The large-cap company has equity capital of Rs 3605.81 crore. Face value per share is Rs 10.

Idea Cellular's consolidated revenue from operations declined 14.26% to Rs 8126.10 crore in Q4 March 2017 over Q4 March 2016.

Idea said that the Indian wireless industry witnessed an unprecedented disruption in the second half FY 2017on account of free voice & mobile data promotions by the new entrant in the sector (Reliance Jio). The October to April 2017 interval can be best described as 'Period of Telecom Discontinuity', permanently changing mobility business parameters, it added.

Consequently, the revenue KPIs & financial parameters for all mobile operators have sharply declined in the second half of FY 2017. With the new entrant starting to charge for its services, albeit very slowly, the sector is expected to return to growth in FY 2018, said.

The capex guidance of for FY 2018 is Rs 6000 crore with current spectrum portfolio.

With regard to updates on merger with Vodafone India, the company said that Vodafone & Idea have initiated necessary steps to obtain regulatory approvals for the proposed merger.

Shares of Idea Cellular had risen 6.15% in the preceding three trading sessions to settle at Rs 92.30 on Friday, 12 May 2017, from its closing of Rs 86.95 on 9 May 2017.

Idea Cellular is the third largest wireless operator in India with a revenue market share (RMS) of 18.7% as at 31 December 2016. It is the sixth largest mobile telecommunications company (counted on operations in a single country) in the world based on number of subscribers as of 31 December 2016.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 15 2017. 09:20 IST