Idea Cellular - March 2013 Results Preview - Motilal Oswal

- We expect Idea to report mobile traffic growth of 4% QoQ (11% YoY). We expect RPM to improve 0.7% QoQ (decline 2% YoY).

- ARPU is likely to increase 2.4% QoQ to INR162 (v/s 6.8% increase in 3QFY13).

- EBITDA margin should expand 70bp QoQ to 27.1%. EBITDA loss in new circles is estimated at INR1.75b.

- We expect net profit to grow 16% QoQ to INR2.66b.

- Idea trades at an EV/EBITDA of 6.7x FY14E and 5.3x FY15E. Maintain Buy.

Source : Equity Bulls

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