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Idea Q1 net profit jumps 57% to ` 728 cr

July 21, 2014

IDEA Cellular, the country's third- biggest mobile phone company, reported 57- per cent jump in first- quarter net profit to ` 728.2 crore on Monday on the back of increased demand for mobile Internet services and higher call rates as against ` 462.71 crore in the year- ago period.

"The strong consumer demand, expanding network footprint and spectrum portfolio, and steady cash flow from operations reaffirm Idea's ability to deliver consistent and profitable growth," Idea said in a statement.

During the quarter, the company saw 136- per cent year- onyear growth in mobile Internet business. The company sold 32.5 billion megabytes of mobile data on its 2G and 3G platform. The network usage of the company grew by 12.2 per cent on yearly basis.

The higher voice rate realisation and jump in data contribution to 11.5 per cent of service revenue helped improve average realisation per minute (ARPM) by 1.5 paise from 43.6 paise in Q4, FY14 to 45.1 paise in Q1 FY15. The value added services contribution has improved sharply to 17.8 per cent of overall service revenue, Idea said.

Idea posted 16- per cent increase in consolidated revenue at ` 7,484.8 crore during the first quarter compared to ` 6,470.93 crore in the same period last year. Net mobile data consumer base increased by 2.6 million to 27.9 million on a quarterly basis.

The blended data ARPU (2G+ 3G) also improved to ` 108 and usage per data subscriber is at 409 MB. The stock closed at ` 139.75 apiece, down by 1.01 per cent, on the Bombay Stock Exchange. Analysts had expected that Idea, part of the Aditya Birla conglomerate and nearly a fifth- owned by Malaysia'sAxiata, to earn ` 629 crore, according to Thomson Reuters I/ B/ E/ S.

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Source: Mail Today (India)

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