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Idea shares end 2% lower after Q2 profit takes sharp plunge

Idea Cellular, the country's third-largest telecom operator, yesterday announced an 88 per cent plunge in consolidated net profit at Rs 91.46 crore in the September quarter due to higher expenses.

twitter-logo PTI   New Delhi     Last Updated: October 25, 2016  | 16:43 IST
Idea shares end 2% lower after Q2 profit takes sharp plunge

Shares of Idea Cellular ended 2 per cent lower on Tuesday after the company reported an 88 per cent plunge in consolidated net profit for September quarter.

The stock dipped 2.08 per cent to end at Rs 75.40 on BSE.

During the day, it lost 3.83 per cent to Rs 74.05.

The company's market valuation went down by Rs 575.22 crore to Rs 27,151.78 crore.

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On the volume front, 12.35 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day.

Idea Cellular, the country's third-largest telecom operator, yesterday announced an 88 per cent plunge in consolidated net profit at Rs 91.46 crore in the September quarter due to higher expenses.

Net profit stood at Rs 762.27 crore in the corresponding three-month period a year ago.

"Higher network running expenses due to accelerated expansion, increased subscriber acquisition and servicing cost, and multiple inflationary pressures resulted in overall operating cost increase," the cellular firm said in a statement.

The company further said that its margin was adversely impacted by one-time depreciation charge of Rs 1,954.3 crore and finance cost of Rs 875.3 crore. The launch of 4G services in 10 circles and 3G in some areas also had its impact on margin.

The revenue of Idea Cellular, however, increased by 7.2 per cent to Rs 9,300.23 crore in the reported quarter from Rs 8,675.37 crore in the year-ago period.

The BSE Mid-Cap index provisionally fell 0.30 per cent. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index provisionally rose 0.13 per cent, outperforming the Sensex.

Moving to the domesic market, 17 scrips out of the 30- share sensex pack ended lower while 13 others closed higher

Major losers were M&M 2.72 pct, Tata Steel 2.51 pct, Gail 2.02 pct, HUL 2.00 pct, ONGC 1.30 pct, TCS 1.20 pct, HDFC Bank 1.19 pct, Infy 1.13 pct and Tata Motors 1.07 pct.

However, Adani Ports and Special Economic Zone jumped 9.43 per cent after consolidated net profit rose 60.97 per cent to Rs 1090.81 crore on 23.56 per cent increase in total income to Rs 2416.77 crore in Q2 September 2016 over Q2 September 2015. It was followed by Dr Reddy 3.59 pct, ICICI Bank 1.60 pct, Axis Bank 1.49 pct, Bharti Artl 1.48 pct, Maruti 1.22 pct, Power Grid 1.14 pct and Asian Paints 1.10 pct.

Among the S&P BSE sectoral indices, IT fell by 0.84 pct followed by FMCG 0.83 pct, Teck 0.56 pct, Capital Goods 0.53 pct, Oil&Gas 0.48 pct, Auto 0.43 pct, Metal 0.41 pct and Energy 0.34 pct, While Telecom rose by 0.76 pct, Consumer Durables 0.46 pct, Healthcare 0.46 pct and Bankex 0.25 pct.

The market breadth turned negative as 1,446 stocks ended in red, 1,344 closed in green while 235 ruled steady.

The total turnover on BSE amounted to Rs 2,987.80 crore, lower than turnover of Rs 3,396.82 crore registered during the previous trading session.

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