Idea Cellular share price fell 7.5 per cent on Friday after the company’s second quarter earnings failed to cheer investors.
After falling 8.97 per cent to Rs 149.80 in intra-day trade at BSE, shares of the company finally ended at Rs 140.45, down 7.35 per cent from previous close. On NSE, the stock dipped by 7.53 per cent to Rs 140.45.
Consequently, the company’s market valuation fell by Rs 4,013.47 crore to Rs 50,556.53 crore.
In terms of volume, 12.72 lakh shares of the company changed hands at BSE and over one crore shares were traded at NSE during the day.
The stock was the top loser on NSE’s 50-share Nifty.
“Idea Cellular could not manage to meet market expectations,” said Achin Goel Head of Wealth Management and Financial Planning at Bonanza Portfolio.
Idea Cellular, India’s third-largest telecom operator by subscribers, on Wednesday reported a 7 per cent increase in net profit at Rs 809.26 crore for the July-September quarter, helped by non-voice revenue growth.
The company, however, witnessed a decline in voice usage and pressure on mobile data.
Idea, part of the Aditya Birla group, had reported a net profit of Rs 755.88 crore for the second quarter last fiscal.
Total revenue rose to Rs 8,689.06 crore for the reported period as against Rs 7,569.92 crore a year ago, Idea had said in a statement.
It said voice minutes usage declined to 189.5 billion for the quarter under review compared with 195.8 billion in the preceding three months (April-June of 2015-16).
On a sequential basis, Idea’s net profit declined to Rs 809.3 crore in the reported period from Rs 930.8 crore the previous quarter while total revenue was down to Rs 8,689.1 crore from Rs 8,798.3 crore.
Stock markets were closed on Thursday on account Dussehra.