Idea Posts Profit Of Rs 257 Cr In Q1, But Nothing To Be happy About

Aditya Birla Group owned Idea Cellular today posted a net profit of Rs 257 crore in its first quarter of 2019 after reporting losses in last 6 consecutive quarters. However, this increase of its bottomline is not because of surge in revenue or margins but because of one time sale of its stake in Indus Towers.

On a comparative terms, the operator had posted loss of Rs 815 crore in Q1 of 2018. If we compare on Q-o-Q basis, Idea Cellular had reported a loss of Rs 962 crore in the previous quarter or Q4 of 2018.

In terms of revenue, the firm has reported a consolidated sales of Rs 5889 crore in Q1, 2019 as against Rs 8167 crore in the same period a ayear ago. For the previous quarter of Q4 of 2018, the operator had posted a revenue of Rs 6137 crore.

The company said the tough conditions in the Indian telecom industry is still prevailing and it is evident from a dip in the ARPU.

ARPU for Idea Cellular in Q1 came down to Rs 100 as against Rs 105 in Q4, 2018. The firm has blamed it partly on the reduction in International IUC rate.

Besides the financial performance, there are couple of factors that the company can claim to be happy about. It has finally received the approval from DoT for its merger with Vodafone India. Once merged, the combined entity will be called Vodafone Idea Ltd, and Idea said, the closure will be announced soon.

The other factor is the firm has completed roll out of 4G VoLTE services in all 20 circles where it hass 4G spectrum. As voice and data are eing offered by the telecom operators as bundled service, Idea can expect to negate some of its losses due to free voice services from data plans.

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