Idea Cellular Q1 PAT seen up 20% at Rs 286 cr: KR Choksey

KR Choksey has come out with its first quarter (April-June) earnings estimates for the telecom sector. The brokerage house expects Idea Cellular to report a 25 percent growth quarter-on-quarter (growth of 20 percent year-on-year) in net profit at Rs 286 crore.

Revenues are expected to increase by 7 percent Q-o-Q (up 11 percent Y-o-Y) to Rs 5,954 crore, according to KR Choksey.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 8 percent Q-o-Q (up 18 percent Y-o-Y) to Rs 1,596 crore.

EBITDA margin or operating profit margin is likely to be at 27 percent in June quarter as against 26 percent in March quarter and 25 percent in a year ago period.

KR Choksey on Idea Cellular

Revenue growth of 15 percent Y-o-Y derived by higher subscriber base and increase in ARPU.

EBITDA to improve by 28 percent Q-o-Q on account of cost rationalization.

Net profit to grow by 37 percent Y-o-Y on account of higher depreciation and amortization.

Marginal improvement of 293 bps Y-o-Y in EBITDA margins led by lower operating cost.