Idea Upcoming Result - Competition and Finance Cost May Dent Profitability


Idea is going to release their result and it is widely expected that revenue, EBITA, EBIT and APRU will be scrutinized by the analyst community. Idea debt level went up due to spectrum buyout and heavy capex to rollout 4G network to compete with Incumbents like Airtel, Vodafone and upcoming Reliance Jio. It is expected that minute and data usages per user will be higher but it will be interesting to see the realization. The finance cost will impact the overall profitability. All will be interested to hear from the management about their plan around 4G to fend off hotly talked about competition with Reliance Jio. For the next two to three quarter, Idea will be spending heavily in advertisement and high ARPU based userbase to secure their main source of revenue.

For Investors, it is advisable to be stay away from the equity delivery or F&O market when it comes of Idea Cellular.

It is also recommended that Investor should not miss the chance if equity price goes down to INR 80 in next 30 days and hold it for more than 12 months to expect handsome return.

Disclaimer : Consult your financial advisor before investing

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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