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Idea Cellular announces audited results for the Fourth Quarter (Q4) and Year ended March 31, 2013

25th April, 2013

Highlights - Q4 FY13
Idea - Standalone 1 Revenue Rs. 60,951 mn EBI TDA Rs. 15,037 mn PAT Rs. 2, 670 mn
Idea - Consolidated 2 Revenue Rs. 60,614 mn EBI TDA Rs. 16,731 mn PAT Rs. 3,082 mn

INR mn
 
Idea standalone1
Idea consolidated 2
Q4 FY13
Q3FY13
FY13
FY12
Q4 FY13
Q3 FY13
FY13
FY12
Revenues - established services areas 3
53,272
49,309
198,459
175,252
     
Revenues - new services areas 4
7,679
6,826
27,490
21,548
     
Total revenue
60,951
56,135
225,949
196,800
60,614
55,785
224,576
195,411
EBITDA - established services areas 3
16,702
14,967
60,621
51,655
     
EBITDA - new services areas 4
(1,665)
(1,793)
(6,907)
(6,496)        
Total EBITDA
15,037
13,173
53,714
45,159
16,731
14,734
60,046
50,924
EBITDA per cent - Established Service Areas 3 31.4% 30.4% 30.5% 29.5%        
EBITDA per cent - New Service Areas 4
-21.7%
-26.3%
-25.1%
-30.1%        
Total EBITDA per cent
24.7%
23.5%
23.8%
22.9 %
27.6%
26.4%
26.7%
26.1%
Depreciation & Amortisation
8,386
8,190
32,142
27,277
9,092
8,836
34,778
29,813
EBIT
6,652
4,983
21,572
17,882
7,639
5,,898
25,268
21,111
Interest and Financing Cost (Net)
1,927
2,056
8,184
9,086
2,244
2,416
9,495
10,558
Dividend from Indus    
1,543
         
PBT
4,724
2,927
14,930
8,796
5,395
3,482
15,773
10,553
PAT
2,670
1,911
10.080
6,036
3,082
2,286
10,109
7,230
Cash profit 5
13,067
11,085
46,968
36,079
14,274
12,142
49,795
40,255

Idea, returns strongly to its upwards revenue trajectory, with 8.6 per cent sequential quarterly growth in Q4FY13 on the back of 5 per cent QoQ growth in Q3FY13, reaffirming the increasing consumer preference for brand Idea. The company maintains its enviable track record of being the 'fastest growing large Indian mobile operator' with financial year 2012-13 gross revenue of Rs.225,949 million, an annual growth of 14.8 per cent.

The high revenue growth is led by sharp expansion of voice minutes @ 8.5 per cent to 143.4 billion, on sequential quarterly basis, indicating consumer demand for mobile telephony is robust. The VLR growth is back with company clocking 8.3 million incremental quarterly growth and delivering over 40 per cent of industry incremental VLR in first 11 months of FY13 (as per TRAI February 2013 report). Idea now serves 121.6 million quality customers.

Contrary to expectations, the ARPM (Average Realised Rate per Minute) was nearly flat at 41.2p against 41.1p in Q3FY13. While the challenges on Voice ARPM continue, the company improved 'Non Voice Revenue' to 15.2 per cent (14.6 per cent in Q3FY13) led by data growth.

The Q4FY13 has the highest data adoption by Idea customers' with 4.5 million sequential quarter addition, as the EoP base of data users grew to 26.2 million, now contributing 6.6 per cent to service revenue. The data volume expanded by 13.8 per cent to 11.4 billion MB (10.0 billion MB in Q3FY13) and data realised rate improved by 9.5 per cent to 33.9p per MB in Q4FY13 (31.0p in Q3FY13). The active 3G subscriber base for the company stands at 5.1 million, helping overall 2G+3G data revenue growth on sequential quarterly basis by 24.6 per cent and data ARPU reaching to Rs.55.

The overall exponential revenue growth has translated into EBITDA of Rs.15,037 million, margin improvement by 1.2 per cent to 24.7 per cent, inspite of accounting for one-off regulatory charge of Rs.760 million reflecting in 'License and WPC Charges'. Annual EBITDA has increased to Rs.53,714 million @23.8 per cent in FY13 in comparison to Rs.45,159 million @22.9 per cent in FY12.

The standalone PAT for Q4FY13 has improved to Rs.2,670 million even after accounting for cumulative deferred tax liability at a higher rate. The annual PAT improved by 67 per cent to Rs.10,080 million in FY13 against Rs.6,036 million in FY12.

The company generated healthy cash profit of Rs.46,968 million in FY13, a growth of 30.2 per cent over FY12. After 16 years of start of operations, the board of Idea has recommended its maiden dividend @ 3 per cent, an overall payout of Rs.1,163 million (including dividend distribution tax). Idea is thankful to its 2,70,000 retail investor who have reposed faith in the company.

Idea continues to strengthen its competitive standing by investing in long term value creators - launched 2,432 GSM sites and 1,595 3G sites, expanded optical fibre network to 74,000km and strengthened its presence in NLD, ILD, ISP, data services and smartphone device business. Idea is the biggest net gainer nationally in the Mobile Number Portability program, a strong indicator of the popular appeal of Idea mobile services.

Idea is one of the few companies in the world, which is able to run high quality telecom services at the world's lowest price points and yet deliver stable cash profits. The improving capacity utilisation, increasing brand popularity and quality of consumer service with a strong balance sheet underscores Idea's ability to benefit from long term sector opportunities.
Notes:

  • Idea standalone represents Idea, and its 100 per cent subsidiaries. Effectively, this encompasses all operations, excluding the joint venture i.e. Indus.
  • Idea consolidated represents Idea standalone and proportionate consolidation of Indus (@16 per cent).
  • Established service areas represent 13 service areas namely Maharashtra and Goa, Gujarat, Andhra Pradesh, Madhya Pradesh and Chhattisgarh, Delhi, Kerala, Haryana, Uttar Pradesh West and Uttaranchal, Uttar Pradesh which East, Rajasthan and Himachal Pradesh, Punjab and Karnataka service areas.
  • New service areas represent nine service areas of Mumbai, Bihar, Orissa, Tamil Nadu, J&K, Kolkata, West Bengal, Assam and North East.
  • Cash profit is calculated as summation of PAT, depreciation and amortisation, charge on account of ESOPs and deferred tax, for the relevant period.
  • Figures for past periods have been regrouped, wherever necessary.

About Idea Cellular Ltd.
Idea Cellular is the third largest wireless operator in India with a revenue market share of 14.8 per cent (Q3FY13). Idea is listed on the National Stock Exchange (NSE), and the Bombay Stock Exchange (BSE) in India. Idea is part of the Aditya Birla Group, India's first truly multinational group. The group operates in 36 countries, is anchored by an extraordinary force of over 136,000 employees belonging to 42 nationalities, and derives over 53 per cent of its revenues from operations outside India.