Idea Cellular quarterly net profit declines 12 percent

July 29th, 2011 - 5:11 pm ICT by IANS  

Mumbai, July 29 (IANS) Idea Cellular Friday posted an increase of 12 percent in its consolidated net profit at Rs.177.3 crore for the quarter ended June 30. The results were impacted by the fees paid for 3G licences and the charging of related interest cost.

The company had posted Rs.201.4 crore net profit during the like period of the previous financial year.

“With the introduction of 3G service in this quarter additional amortisation of 3G spectrum fee, Rs.656 million (Rs.65.6 crore) and charging of related interest cost, Rs.1,228 million (Rs.122.8 crore) has impacted the profits,” the company said in a regulatory filing.

The total revenue stood at Rs.4,520.7 crore, up 23.7 percent during the quarter under review as against Rs.3,653.7 crore during the corresponding quarter of 2010-11.

The telecom operator is aggressively expanding its 3G footprint and currently covers over 825 towns in 15 service areas. This includes bilateral roaming arrangements for the services area of Mumbai, Bihar, Karnataka, Delhi, Kolkata and Tamil Nadu (including Chennai) with leading quality operators.

The company stays committed to reach to 3,000 towns across India by the end of this financial year, through a combination of home network and roaming arrangements.

At the Bombay Stock Exchange, the shares of the company were 4.94 percent up to trade at Rs.94.45.

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