Idea :: 2QFY2012 - Result Review: Angel Broking,

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Idea
For 2QFY2012, Idea Cellular (Idea) reported modest growth in revenue, which
was in-line with our expectation; however, the company disappointed on the
bottom-line front. Revenue came in at `4,620cr, up 2.2% qoq, on the back of
growth in ARPM by 4.1% qoq to `0.427/min and subscriber growth of 5.4% qoq
with end-of-period subscriber base standing at 100.2mn. The effect of these
positive factors was partially overshadowed by the negative impact from the
decline in minutes of usage by 6.9% qoq to 364min from 391min in 1QFY2012.
EBITDA margin decreased by 95bp qoq to 25.7% due to higher employee costs
and roaming and access charges. However, EBITDA per minute stood flat qoq at
`0.11. PAT came in at `106cr, down 40.3% qoq, due to higher interest costs of
`294cr and higher depreciation and amortization expenses of `737cr on account
of 3G-related expenses. We maintain our Neutral view on the stock.