Idea Cellular slipped 2.45% to Rs 85.50 at 10:26 IST on BSE after posting 12.7% fall in net profit to Rs 269.53 crore on 47.1% increase in net sales to Rs 2173.18 crore in Q1 June 2008 over Q1 June 2007.
The company announced the results after trading hours yesterday, 24 July 2008.
Meanwhile, the BSE Sensex was down 327.97 points, or 2.22%, to 14,449.04. The market retreated on weak global cues. US stocks declined sharply on Thursday, 24 July 2008, after a report showing yet another drop in US home sales prompted investors to take profits in financial shares, which had rallied over the past week.
On BSE, 4.74 lakh shares were traded in the counter. The scrip had an average daily volume of 38.28 lakh shares in the past one quarter.
The stock hit a high of Rs 87.20 and a low of Rs 83.10 so far during the day. The stock had a 52-week high of Rs 161 on 18 October 2007 and a 52-week low of Rs 74.20 on 16 July 2008.
The mid-cap company had underperformed the market over the past one month till 24 July 2008, declining 14.11% compared to the Sensex’s return of 3.92%. It had also underperformed the market in the past one quarter, declining 18.50% compared to Sensex’s decline of 13.72%.
The company has an equity capital of Rs 2635.36 crore. Face value per share is Rs 10.
The current price of Rs 85.50 discounts its Q1 June 2008 annualised EPS of Rs 4.09, by a PE multiple of 20.90.
On consolidated basis, Idea Cellular reported a 14.73% fall in net profit to Rs 263.09 crore on 47.41% rise in total income to Rs 2178.07 crore in Q1 June 2008 over Q1 June 2007.
On 25 June 2008, the company said it would buy 40.8% stake in Spice Communications at Rs 77.30 a share. Idea Cellular would merge Spice with itself through a share swap whereby Spice shareholders would get 49 Idea shares for every 100 Spice shares held
In May 2008, private equity firm Providence Equity Partners said it would buy 20% in Idea Cellular’s unit Aditya Birla Telecom for $640 million or Rs 2,560 crore.
Aditya Birla group firm Idea Cellular is a wireless telecom company, operating in various Indian states including Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Rajasthan and Kerala.