Idea Cellular's network down after dismal Q1 results

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Mumbai, Jul 25: Idea Cellular slipped by 2.45 per cent to Rs 85.50 at Bombay Stock Exchange (BSE) after posting 12.7 per cent fall in net profit at Rs 269.53 crore on 47.1 per cent increase in net sales at Rs 2,173.18 crore in the first quarter of the current fiscal against the corresponding period last year.

On BSE, 4.74 lakh shares were traded in the counter. The scrip had an average daily volume of 38.28 lakh shares in the past one quarter, a leading broker said. The stock hit a high of Rs 87.20 and a low of Rs 83.10 so far during the day. The stock had a 52-week high of Rs 161 on 18 October 2007 and a 52-week low of Rs 74.20 on 16 July 2008.

The mid-cap company had underperformed the market over the past one month till 24 July 2008, declining 14.11 per cent compared to the Sensex's return of 3.92 per cent. It had also underperformed the market in the past one quarter, declining 18.50 per cent compared to Sensex's decline of 13.72 per cent.

The Company has an equity capital of Rs 2,635.36 crore. Face value per share is Rs 10.

The current price of Rs 85.50 discounts its first quarter June 2008 annualised earning per earning per share (EPS) of Rs 4.09, by a PE multiple of 20.90.

On consolidated basis, Idea Cellular reported a 14.73 per cent fall in net profit to Rs 263.09 crore on 47.41 per cent rise in total income to Rs 2178.07 crore in Q1 June 2008 over first quarter of June 2007.

On 25 June 2008, the Company said it would buy 40.8 per cent stake in Spice Communications at Rs 77.30 a share. Idea Cellular would merge Spice with itself through a share swap, whereby Spice shareholders would get 49 Idea shares for every 100 Spice shares held In May 2008, private equity firm Providence Equity Partners said it would buy 20 per cent in Idea Cellular's unit Aditya Birla Telecom for USD 640 million or Rs 2,560 crore.

Aditya Birla group firm Idea Cellular is a wireless telecom company, operating in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, east Uttar Pradesh, Rajasthan and Kerala.


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