Oct 22, 2012, 11.18 PM | Source: CNBC-TV18
Telecom operator Idea Cellular's profit after tax is expected to go down by 2.5 percent quarter-on-quarter to Rs 228 crore in the quarter ended September 2012.
Reema Tendulkar (more)
Research Analyst, CNBC-TV18 |
Telecom operator Idea Cellular 's profit after tax is expected to go down by 2.5 percent quarter-on-quarter to Rs 228 crore in the quarter ended September 2012. Analysts feel the superlative financial performance from the company has been waning as they expect a tepid quarter due to seasonality. In first quarter of current financial year 2012-13, revenues fell by 2.5 percent after showing 5-9 percent growth in many quarters, though it still beats peers).
Revenues are likely to fall by 1.5 percent to Rs 5,430 crore from Rs 5,503.7 crore during the same period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) too is seen declining to Rs 1,416 crore from Rs 1,435.6 crore.
Average revenue per user (ARPU) is likely to be at Rs 151.5 as against Rs 156 QoQ. Minutes of usage (MoU) is expected to be at 365 in the second quarter of FY13 as against 379 in previous quarter. Revenue per minute is seen falling to 41.1 paise versus 41.2 paise during the same period.
Analysts feel the second quarter is a seasonally weak quarter. Volumes will decline for all operators. And the seasonal slowdown is becoming more visible every year in Q2 as a higher proportion of subscribers is coming from rural areas, thus impacting MOU growth.
Margins are expected to be flat at 26.08 percent. According to analysts, every second quarter, employee costs increase for Idea given the one-time payment made. However customer acquisition costs have started declining for the industry. This may partially offset the increase from employee costs.
According to Mitessh Thakkar of miteshthacker.com,
Rajat Bose of rajatkbose.com is of the view that o
Idea raised Rs 1,500 crore on December 13 and Rs 1
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