Idea Cellular Q2 net down 26 p.c. Q-o-Q

NEW DELHI, INDIA: Idea Cellular, India's fifth-largest mobile operator, on Monday reported consolidated quarterly net profit of Rs 220.2 crore on sales of Rs 2973.9 crore, a dip of nearly 26 per cent compared to the net profit in the previous quarter, when it had registered a net profit of Rs 297.1 crore.

The revenue for the quarter is also marginally down from the previous quarter revenue of Rs 2975.9 crore.

However, compared to the year-ago quarter, the profit is up by over 52 per cent. For the second quarter of FY 2009, Idea had registered a profit of Rs 144.07 crore.

The EBITDA for the quarter stood at Rs 809.5 crore where as Rs 0.71.

Idea said it obtains about 40 per cent of its revenues from the rural consumer. The July-Sept quarter marks seasonally subdued demand. Additionally this year, delayed monsoons have caused a further contraction in aggregate rural demand.

However, Idea said this has negligible long term consequence, though it has affected the Q2. With Q2 profits, Idea has now wiped off its brought forward losses of all earlier years, said release.

The Idea press release said that the telecom player has launched commercial operations in Jammu and Kashmir on October 14. With the imminent launch in Kolkata & West Bengal and North East & Assam service areas in Q3, Idea will, within 2009, become a pan-India operator, befitting its standing and potential.