Debt issues not much of a worry: Idea

Revenue growth too surpassed expectations, rising 9% to 5,030 crores. Revenues per minute improved for the third quarter in a row, rising 1.4%.

In an interview to CNBC-TV18, Himanshu Kapania, chief executive officer, Idea Cellular said, concerns over the company's debt situation are not much of a worry.

For this financial year, Idea's capex guidance stands at Rs 4,000 crore . "We are on track to spend the full Rs 4,000 crore of this investment," he said.

Below is the edited transcript of Kapania's interview with CNBC-TV18's Kritika Saxena. Also watch the accompanying video.

Q: Could you take us through the company's debt situation?

A: Our current focus is primarily operations. We are happy that operations is generating sufficient cash to be able to meet our strategic plan for expansion of our coverage of voice in the rural areas as well areas as well as expand our wireless broadband business. We don’t see a need to expand our leverage or change our equity structure at this point of time, unless there is one significant need for large amount of cash for strategic reasons.

Q: Can you share with us the capex plans for the next one quarter if possible?

A: As we had given a guidance, for this financial year our capex guidance is Rs 4,000 crore. We are on track to spend the full Rs 4,000 crore of this investment.

Q: Your new circles have been growing, that has been a bit of a challenge, but in terms of its revenue contribution its still around 11%. Going forward will that be a area of focus. Will you be looking to increase the overall contribution in the revenue pie?

A: Idea's overall strategy has been to dig deep into our established circles. We have 13 established circles which represent almost 67% of the telecom market. We currently enjoy over 19% revenue market share. There is 33% of the market which is what is the new circle that you are referring to which is calibrated in our approach.