Idea Cellular Q4 net seen up 10%, volume growth may be 5.5%

Idea Cellular's fourth quarter profit after tax may climb 9.5 percent sequentially to Rs 840 crore compared to Rs 767.1 crore in December quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Revenue is seen rising 4.7 percent to Rs 8,396 crore during January-March quarter from Rs 8,017.5 crore in the previous quarter. Operating profit may increase 5.2 percent quarter-on-quarter to Rs 2,895 crore and margin may expand by 17 basis points to 34.5 percent in the quarter gone by.

Key performance indicators

Average revenue per user may inch up to 179.5 in the quarter ended March 2015 compared to 179 in December quarter. However, revenue per minute may decline to 46 paise from 46.3 paise as TRAI has cut mobile termination charge effective March 1. Termination charge or interconnect usage charge was reduced from 20 paise to 14 paise.

Voice revenue per minute may also fall 1.6 percent to 35 paise from 35.6 paise during the same period.

Analysts believe Idea may continue to outpace industry, in terms of subscriber addition.

The poll expects volume growth of 5.5 percent at 180 billion minutes in fourth quarter of financial year 2014-15 from 170.7 billion minutes in third quarter.

Minutes of usage are expected to be 390 during March quarter compared to 388 in December quarter.

Data growth is expected to be strong during the quarter. It has been over 100 percent year-on-year over the last five quarters.

Meanwhile, Idea Cellular has paid Rs 30,306 crore, the highest amount compared to peers. It managed to renew spectrum in all its 9 circles in 900Mhz.

Key things to watch out for would be rise in tariffs post hefty payout for spectrum.