Idea Cellular tanks nearly 6 pc as Q4 profit shrinks

Shares of telecom operator Idea Cellular tumbled nearly 6 per cent today after the company’s net profit declined 39 per cent in the March quarter. The stock declined 5.64 per cent to Rs 119.05 on BSE. On NSE, it slumped 4.9 per cent to Rs 120.30.

Idea Cellular’s net profit dived 39 per cent to Rs 575.6 crore in the said quarter due to a spike in finance costs.

The company had posted a net profit of Rs 941.8 crore in January-March of 2014-15.

Revenue of the company, however, increased 12.6 per cent to Rs 9,483.9 crore during the reported quarter compared with Rs 8,422.5 crore a year earlier.

Net debt of the company as on March 31, 2016, stood at Rs 38,750 crore, including all deferred payment liability to be paid to the government for spectrum purchased in auctions.

For the year to March 2016, the company’s consolidated net profit declined 3.5 per cent to Rs 3,079.9 crore, from Rs 3,192.9 crore a year ago.