ICICIdirect.com's report on Idea Cellular
Revenues came in at Rs 7569.9 crore, up 19.7% YoY, slightly lower than our expectations of Rs 7623.1 crore. There was a 2.2% QoQ decline in voice ARPMs, which weighed down on revenues. The decline in voice realisations was partially offset by the 21.3% and 0.8% volume and realisation growth in the data segment
EBITDA came in at Rs 2490.7 crore, up 26.3% YoY and 12.6% QoQ due to higher revenues & operating leverage.
The company reported a PAT of Rs 755.9 crore (vs. expectation of Rs 696.9 crore), up 68.9% YoY due to other income on account of high treasury income
"Though the debt issue has been taken care of with the rights issue (Rs 3000 crore) and private placements (Rs 750 crore), owing to the lack of adequate spectrum we remain cautious on the stock. Operationally, the company continues to post robust voice and data volume growth. We expect revenue and PAT to grow at 13.2% and 72.0% CAGR (FY14-16E). We change our stance to HOLD and maintain the target price at Rs 170", says ICICIdirect.com research report.
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