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Apr 27, 2012, 12.14 PM IST
Idea Cellular, country's second largest telecom operator by market cap, has reported a lower than expected growth of 18.91% quarter-on-quarter in its consolidated net profit of Rs 239 crore for the fourth quarter of FY12.
By Reema Tendulkar, Research Analyst at CNBC-TV18
Idea Cellular , country's second largest telecom operator by market cap, has reported a lower than expected growth of 18.91% quarter-on-quarter in its consolidated net profit of Rs 239 crore for the fourth quarter of FY12.
Consolidated revenues of the company increased 6.74% to Rs 5,370 crore in the January-March quarter of 2012 from Rs 5,030.8 crore in the October-December quarter of 2011.
Analysts on average had expected net profit of Rs 255 crore and revenues of Rs 5,300 crore.
Meanwhile, shares of the company closed the day at Rs 83.80, up 4 %., on market expectations of better-than-expected earnings
The company said the quarter's revenue growth was led by the over 9% growth in voice minutes to 124 billion. minutes compared to 114 billion minutes in Q3FY12.
The uptrend of average realisation per minute (ARPM) was halted with decline in ARPM to 42.2p from 43.3p, a harsh reminder of the market place battle and overcapacity. While challenges on the voice ARPM continue, the company remains focused to improve 'non-voice revenue', which contributed 14.3% of revenue in Q4FY12 against 13.7% in last
The company also said its 3G investment plans are on track and high speed broadband services are now available in 3,000 towns and 10,000 villages, in 20 service areas (including roaming arrangements). The company, in its own way, is accelerating the deployment of 3G ecosystem, by launching Idea branded 3G handsets. Nearly 2.6 million Idea customers are active on company's 3G platform and enjoying futuristic services.
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