Higher interest costs see Idea net profit drop 13%

Business

oi-Sunil

By Sunil Fernandes

Published: Friday, April 27, 2012, 9:16 [IST]

Idea Cellular has seen its consolidated net profit fall to Rs 239 crore for the fourth quarter ended March 2012, from Rs 275 crore reported a year earlier.

Idea Cellular's total income grew by 27 per cent to Rs 5,369 crore from Rs 4,234 crore in the corresponding quarter of last year. Minutes of usage (MoU) during the quarter grew a healthy 9.1 per cent, on the back of 6.4 million active subscribers added during the same time.

The Idea results have come in against a backdrop of heavy competition in the sector and mounting debts. Company's in the sector have been struggling to keep costs does and improve profitability. Also, frequent regular interventions by the Telecom Regulatory Authority of India have taken a toll on the sector.

The shares of Idea cellular were trading at Rs , on the Bombay Stock Exchange.

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