Idea Cellular - 4QFY2013 results - Angel Broking

For 4QFY2013, Idea Cellular (Idea) reported strong set of results, beating our as well as market expectations on all fronts. Idea's consolidated revenue came in at Rs. 6,061cr, up 8.7% qoq. The mobility segment's revenue increased strongly by 8.7% qoq to Rs. 5,953cr, on the back of 8.5% qoq growth in network traffic to 143bn min. MOU increased considerably by 5.7% qoq to 406min while ARPM remained almost flat at Rs. 0.412. While the challenges on voice ARPM continued, the company increased share of VAS revenues to 15.2% from 14.6% in 3QFY2013. Idea's subscriber base increased by 6.8% qoq with the end of period (EoP) subscriber base standing at 122mn. Idea's EBITDA margin increased by 119bp qoq to 27.6%. The EBITDA margin inch up was led by strong revenue growth along with qoq almost flat network operating charges. The PAT came in at Rs. 308cr, up 35% qoq, led by strong operational performance and qoq lower interest charges at Rs. 224 vs. Rs. 242cr in 3QFY2013.

We maintain Neutral view on the stock.

Source : Equity Bulls

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