Idea Cellular - KPI's under pressure, downgrade to HOLD - Emkay

- Q1FY13 results below estimate- Revenues at Rs55.0bn (up 2.5% QoQ), EBITDA at Rs14.4bn (down 5% QoQ, adjusting for one-off prov. in Q4FY12) & APAT at Rs2.5bn (-25% QoQ)

- Traffic on network grew 5.3% qoq on the back of 4% qoq growth in subscribers. But pricing pressure led to weak rev. growth of 2.5% QoQ. ARPM declined 2.4% qoq to Rs0.41

- Going forward, pricing pressure would continue & volume growth is expected to taper down. ARPM and subs growth to remain muted in coming quarters

- Cut FY13E/14E EPS by 23%/9% to Rs3.4/Rs5.3. Downgrade to HOLD with revised TP of Rs84 (adjusting -ve Rs24 for regulatory recommendation).

Source : Equity Bulls

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