Idea Reports 12% Loss in Its Q1 Net Profit

IdeaOn Friday, The Aditya Birla group company Idea Cellular said in a statement that the company has cited a 12% loss in the consolidated net profit as the figures reached to Rs 177.26 crore for the first quarter ended June 30, 2011 despite telecom operator's high interest and amortization expenses with the introduction of 3G services in this quarter.

The officials confirmed that to acquire 3G spectrum for 11 circles, Idea Cellular has shelled out an amount of Rs. 5,700 core and also amortization and interest costs this quarter costed the company Rs. 200 crore.

According to the reports, the company's profit last year during the same period was Rs. 201.4 crore. Also, the report showed that the revenues have increased by 23% at Rs 4,520.72 crore for the first quarter as compared to Rs 3,653.7 crore a year ago.

"We have continued with our revenue growth and clocked the $1 billion gross revenue figure for the first time this quarter largely driven by the balanced growth in the voice business," Mr. Himanshu Kapania, MD, Idea Cellular told TOI.

To tackle the situation, the mobile operator has now raised call tariffs in six circles of Kerala, Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh and Western Uttar Pradesh by approx 20%. Now onwards all the new and existing pre-paid customers, who will go in for recharge would have to face the new call charges.