Idea’s profit doubles, registers Rs 398 crore

The double bottom line drivers of voice and data business helped Idea more than double its ‘Profit After Tax’ (PAT) from Rs 191.1 crore in Q3FY13 to Rs 398.1 million in Q3FY14.

The cash profit for Idea remained healthy at Rs 1,566.3 crore, a growth of 41.3 percent over Q3FY13, helping reduce net debt by Rs 2,736.4 crore during 2013 to Rs 8,945.8 crore.

Idea’s Q3FY14 standalone revenue grew by 17.8 percent from Rs 5,613.5 crore (Q3FY13) to Rs 6,610.5 crore on back of 9.4 percent annual growth in ‘Total Minutes of Use’ and 107.6 percent in data volume.

Consumer preference for brand Idea continues to rise as company added 18 million incremental subscribers (on VLR) in calendar year 2013, now serving 129 million subscribers. Idea supported its consumer centricity vision by launching highest ever 18,297 new sites (2G+3G) during calendar year 2013 expanding Idea presence to over 344,000 towns and villages.

The quality of Idea subscribers improved as ARPU increased to Rs 169 and subscriber churn fell by 1.2 percent to 5.6 percent.

The VAS contribution increased to 16.1 percent of service revenue, despite steep decline in ‘Non Data VAS’ service contribution from 8.9 percent to 6.6 percent. The higher mobile data adoption has primarily led to VAS growth with data revenue as percent of service revenue improving by 3.8 percent to 9.5 percent in last one year.

The blended mobile data usage per user grew to 309 MB (2G+3G) as total data volume exploded at the rate of 107.6 percent to 20.8 bn MB in Q3FY14. However, with a grim battle for data supremacy, the ‘Average Realised Rate per MB’ (ARMB) fell sharply by 1.3 paisa from 31.0 p/MB to 29.6p/MB.

The company added 4.6 million new 3G users during 2013 with 3G EoP user base (voice and data) now at 8.7 million. The 3G user mobile data ARPU is steady at Rs 112 per month.

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