Idea Cellular Ltd.| Q3FY15 Result Update | Mixed-set of performance: Maintain HOLD but downward revision in TP of Rs.160 :: IndiaNivesh

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Idea Cellular Ltd (Idea) Q3FY15 result was largely in-line with our expectations; except net profit which was below our estimates. Top-line grew by 21.2% Y/Y (+5.9% Q/Q) to Rs 80.2bn against INSPL est of Rs.80.4bn. The revenue growth was led by 18.1% Y/Y (+5.1% Q/Q) increase in total volume minutes and 16.8% Y/Y (+4.7% Q/Q) increase in subscriber addition. During the quarter, minutes of usage per user per month (MoU) increased 3.2% Y/Y (+1.0% Q/Q) to 388 mints (v/s 376 mints in Q3FY14 and 384 mints in Q2FY15). Average revenue per user (APRU) also went-up 5.9% Y/Y (+1.7% Q/Q) to Rs.179 (v/s Rs.169 in Q3FY14 and Rs.176 in Q2FY15). ARPM went-up to 46.3 paisa (v/s 44.9 paisa in Q3FY14 and 45.9 in Q2FY15). EBITDA stood at Rs27.5bn (INSPL est: Rs26.7bn), Up 33.9% Y/Y (+10.5% Q/Q) on account of higher revenue base. As a result, consolidated EBITDA margin expanded 325bps Y/Y (down 143 bps Q/Q) to 34.3% (v/s 31.1% in Q3FY14). PAT for quarter stood at Rs.7.7 bn (INSPL est. Rs.8.2 bn), up 64.0% Y/Y/1.5% Q/Q, owing to higher EBITDA base, partially offset by rise in depreciation expenditure. During the quarter, the company reported higher other income of Rs.1,321 mn (v/s Rs.1,139 mn in Q3FY14 and Rs. 1139 mn in Q2FY15). After adjusting other income, net profit stood at Rs. 6.4 bn, Up 61.0% Y/Y (down 1.1% Q/Q) relative to Rs.3.9 bn in Q3FY14. Key Results Takeaway Operating KPI’s Update…  Idea registered increase in subscriber base of 6.7 mn resulting in total subscriber base of 150 mn (up 4.7% Y/Y). Voice volume grew by 18.1% Y/Y to 171 bn minutes (v/s 145 bn minutes in Q3FY14). On the sequential basis voice volume increased 5.1% y/y due to seasonal uptick. MoU/sub increased at 388 minutes relative to 376 minutes in Q3FY14 and 384 minutes in Q2FY15. Blended churn rate reduced on y-o-y/q-o-q basis to 4.2% from 5.6%/5.0% in Q3FY14/Q2FY15. During the quarter post-paid churn rate stood at 2.7% [v/s 3.0% in Q2FY15 and 2.7% in Q3FY14] and pre-paid churn rate was at 4.3% [v/s 5.8% in Q2FY15 and 5.1% in Q3FY14]. ARPU increased to Rs.178 v/s (Rs.171 in Q3FY14 and Rs.176 in Q2FY15). Average revenue per minutes (ARPM) increased 3.1% Y/Y/0.9%Q/Q to 46.3 paisa due to increase in VAS revenue. Idea remains the key gainer in MNP with net gain of 11.9 mn subscribers. Idea’s VLR subscribers (active subscribers) remain highest in the industry at 100.9% (to 149 mn subscribers) of total subscriber base.  The share of VAS (non-voice) revenues went up to 23.1% (v/s 21.1% in Q2FY15 and 16.1% in Q3FY14) of total revenue. Total data subscribers increased 33.8%Y/Y to 34.1 mn [v/s 25.5 mn in Q3FY14]. Sequentially, data subscribers increased 10.4% to 34.1 mn [v/s 30.9 mn in Q2FY15]. Average revenue per megabytes (ARMB) stood at 26.9 paisa (v/s 26.5 paisa in Q2FY15 and 29.6 paisa in Q3FY14). The company reported data ARPU of Rs.126 (v/s Rs.119 in Q2FY15 and Rs.91 in Q3FY14). Data contribution to the total services revenue

LINK
http://www.indianivesh.in/Admin/Upload/635582066542945000_Idea%20Cellular_Q3FY15%20Result%20Update.pdf