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Idea Cellular Q2,FY 17 Result - Indicate Hidden Threat

Idea Cellular came out with very disappointing Q2,FY 17 failing to meet any expectation of street.The profitability came down to 91 Cr whereas interest and finance cost reached around 1000 Cr.  In my previous assessment of Idea Cellular that growing debt level and increased competition is going to eat out all its effort to return healthy result.

The most disturbing aspect of result is ARPU which experienced around 8% fall q-o-q.
The voice usage went down whereas data consumption went up due to lower pricing model post Reliance Jio launch but revenue per MB went down.

At the end, we all should ask the followings:
1. Who is earning the most from Idea cellular?
2. Who will be in trouble if the trend continue and debt goes under NPA?
3. Who will be loosing the most in case of continuous fall of revenue?

As I mentioned in my another article that "Me happy, All happy" are totally valid for govt as well as TRAI. Still it's not late for TRAI and regulatory body should think over it.

It's clear that Idea Cellular is heading towards loss in Q3 and Q4 FY17.
Millions of investors invested their hard earned money and financial regulators must jump in to ensure to protect the interest of investors.

As also predicted that Indian economic growth may go down in coming quarter which will be triggered from Telecom sector and all credit should go to disruptive Reliance jio Tariff plan.

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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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