Idea Cellular has posted consolidated net loss of Rs 1,106.8 crore for the second quarter of the current fiscal.
The new result marks the fourth straight quarterly loss for Idea, which has signed a merger deal with Vodafone India.
Revenue from operations fell 19.72 percent to Rs 7,465.5 crore from Rs 9,300.23 crore in the corresponding period a year ago.
“The operating environment for Indian mobile operators remained challenging with unrelenting pressure on pricing, introduction of GST @18 percent (compared to service tax @15%) and need for large investments to support the exploding data demand. The significant financial pressure forced the sub-scale operators with limited or no 4G footprint to exit or combine with other operators, leading to faster than expected mobile industry consolidation,” the operator said in a statement.
The season slowdown from July to September also impacted the quarter.
Following the announcement of the results, Idea’s shares fell by 2.83 per cent at Rs 94.30 at BSE.
The net debt for the Company as on September 30, 2017 stands at Rs. 541 billion, including a large component of debt from DoT under ‘Deferred Payment Obligation’ for Spectrum acquired in Auctions.
editor@telecomlead.com
