1. Reliance Jio impact: Idea Cellular reports poor March quarter, market-cap plunges Rs 2,326 cr

Reliance Jio impact: Idea Cellular reports poor March quarter, market-cap plunges Rs 2,326 cr

Shares of Idea Cellular plunged 6.99 % on Monday closing the session at Rs 85.85 a share on the Bombay Stock Exchange (BSE) after the company on Saturday reported a poor set of numbers for the March quarter.

By: | Mumbai | Updated: May 16, 2017 6:41 AM
The Idea Cellular stock was the biggest loser in the S&P BSE Telecom index which fell by Rs 6.45 from its previous close of Rs 92.30. (Reuters)

Shares of Idea Cellular plunged 6.99 % on Monday closing the session at Rs 85.85 a share on the Bombay Stock Exchange (BSE) after the company on Saturday reported a poor set of numbers for the March quarter. The Idea Cellular stock was the biggest loser in the S&P BSE Telecom index which fell by Rs 6.45 from its previous close of Rs 92.30. The S&P BSE Telecom Index fell 0.93 % and closed the session at 1299.18 points. The market cap of Idea Cellular decreased by Rs 2,325.7 crore on Monday, according to Bloomberg data. The company has posted a consolidated net loss of Rs 328 crore for the March quarter compared with a profit of Rs 452 crore a year ago. Earnings per share has reduced to Rs -0.93 compared with Rs 1.22 a year ago and the company’s total revenue has reduced by Rs 1,306 crore in March 2017 quarter.

Trading volumes on the counter surged as 4.52 crore shares changed hands compared with an average of 2.88 crore shares traded daily in three months. “The Indian wireless industry witnessed an unprecedented disruption in the second half of financial year 2016-17 on account of free voice & mobile data promotions by the new entrant in the sector. With the new entrant starting to charge for its services, albeit very slowly, the sector is expected to return to growth in the next financial year,” Idea Cellular said in its report.

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The report also said that due to current industry upheaval, the standalone Idea revenue dropped to an unforeseen level in Q4FY17 at Rs 8,126 crore, a sequential quarterly decline of 6.2% on the back of 6.9% decline in Q3FY17. “However, due to focused cost optimisation drive and forex gain during the quarter, the company was able to hold its Ebitda at Rs 2,196.5 crore, with the Ebitda margin at 27% in Q4FY17, inspite quarterly revenue decline of Rs 536.6 crore.

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