An Aditya Birla Group Company, Idea Cellular is one of the largest mobile network operators that offers pan-India 2G, 3G, and 4G mobile services.
Idea Cellular market capitalisation, as of March 2018, is around Rs. 35,744 crore.
Vodafone Idea Limited Wealth and Recent Performance
Q1 FY 2018-19
- For the quarter ended on June 30, 2018, Vodafone Idea Limited reported its gross revenue to be at Rs.5,889.2 crore. At the end of the same quarter of the previous year, the company had reported its gross revenue to be at Rs.8,166.5 crore. On a q-o-q basis, the company's revenue declined by 3%.
- The consolidated profit after tax (PAT) for the June quarter was reported to be Rs.256.5 crore. With respect to the June quarter of the previous fiscal year, the telecom operated has done exceptionally well considering that back then, it reported a consolidated loss of Rs.815 crore.
- This also marked an improvement over the March quarter, wherein the company had posted a loss of Rs.962 crore.
- The company’s profitability has been impacted dramatically on account of a fierce competition from Jio. Its subscriber base dropped down from 189 million to 187.9 million, y-o-y. With respect to the March quarter, the drop appears to be far more significant.
- For the year ended on March 31, 2018, Vodafone Idea Limited reported its revenue from operations to be at Rs.28,278.9 crore. For the financial year 2016-17, the same figure was reported to be at Rs.35,575.8 crore.
- The company posted a consolidated loss of Rs.4,168.2 crore. In comparison to the previous fiscal year, the company’s losses have quadrupled. As on March 31, 2017, the consolidated losses of Vodafone Idea Limited was Rs.821.5 crore. Considering the average return per user, it dropped sequentially from Rs.114 to Rs.105.
- For the financial year 2017-18, the company’s debt-equity ratio was revealed to be 2.13. As for its basic earnings per share (EPS), it was at a negative Rs.11.36.
- The company’s non-current liabilities have increased y-o-y from Rs.54,911 crore to Rs.60,483 crore. Its total assets are worth Rs.98,577.2 crore.
Q3 FY 2017-18
- The company recorded a consolidated loss of Rs. 1,284.50 crore for the quarter ended December 31, 2017. Idea attributed the loss to a“sharp” cut in call connect charges.
- The net debt of the company was Rs.55,781.80 crore and included a large component of debt from DoT under 'Deferred Payment Obligation' for spectrum acquired in auctions.
- The consolidated income decreased to Rs.6,552 crore in the third quarter, compared with Rs.8,706 in Q3 FY17. Operating income of the company before interest and tax fell 18.5& to Rs 1,223 crore.
- Idea’s average revenue per user was Rs.114 during the quarter, down from Rs.132 in three months ended September.
- The merger between Idea Cellular and Vodafone India Ltd that was announced in March 2017 is expected to be completed by end of June.
Vodafone Idea Limited Stock Trends in 2018
- The opening price of the share at the beginning of January 2018 was Rs.107 on NSE and Rs.108 on BSE. By the end of January, the price fell to Rs.94 on both NSE and BSE. Idea reported a loss of Rs.1,428.20 crore in Q3.
- The stock price continued to fall throughout February and was Rs.93 on both NSE and BSE at the beginning of the month. By the end of February, the stock price had fallen to Rs.84 on NSE as well as BSE. The company raised Rs.3,500 crore via (QIP) Qualified Institutions Placement.
- On March 1, 2018, the opening stock price of Vodafone Idea Limited was observed to be Rs.83.95. The price continued to fall gradually over the course of the month and the shares soon descended into the Rs.70 region. At the start of April, the shares were seen trading at levels above Rs.75.
- A similar trend was seen in April as well. The shares continued to head down in a steady manner without incurring sharp losses. The closing price of the scrip on April 30 was Rs.69.15 on the NSE. Since March, the Vodafone Idea Limited share price had gone down by a little over 10%.
- The slump continued through the course of May. The scrip went down into the Rs.50 region, although the shares managed to recover marginally by the end of the month. By late May, the shares were back at their previous levels above Rs.60. In June, the Vodafone Idea Limited stock price varied at levels from Rs.58 - Rs.62.
- The scrip continued to be highly bearish in the months of July and August. The shares were traded at levels below Rs.55 and the investors didn’t make any discernible gains in this period. The shares plummeted further in September and they eventually hit their 52-week low at Rs.44.85. As of September 17, the shares were seen trading at levels close to Rs.47.
Vodafone Idea Limited Stock Trends in 2016 and 2017
- At the beginning of January 2016, the share price was Rs.141 on NSE and Rs.143 on BSE. The stock closed at Rs.105 on both NSE and BSE by the end of the month.
- In early April, the price of the stock was Rs.110 on NSE Rs.109 on BSE. By end of May, the price did not change much and was Rs.114 on NSE.
- The stock price gradually decreased in July and was Rs.107 on NSE and Rs.106 on BSE. It fell below Rs.100 in August and closed at Rs.78 by the end of September.
- At the beginning of November the price did not change much and was Rs.76. By the end of December 2016, the stock price was Rs.73.
- The opening price of the stock in January 2017 was Rs.74 on NSE and BSE. Idea launched three new mobile apps in early February that may have helped in increasing the price to Rs.110.
- By the beginning of April, the price saw a decrease and was Rs.85. It did not change much throughout May and closed at Rs.83 by the end of June.
- The stock price was Rs.93 in early August and continued to decline by the end of September. The closing price by the end of September was Rs.75.
- In November, Idea posted net loss in Q2 while the stock price increased to Rs.94. By the end of December 2017, the price was Rs.103.
Should you invest in Idea Cellular?
The stock price of Idea Cellular continued to decline from 2016 to 2018. However, the Idea-Vodafone merger is expected to give a strong fight to Reliance Jio to become the leader in the telecom industry. It is advised to do an extensive research about fellow companies and their share prices before buying shares of Idea Cellular.
Idea Cellular is all set to merge with Vodafone to become India’s largest telecom operator. The company has a pan-India integrated wireless broadband operator offering 2G, 3G and 4G services. Idea’s pan-India network of over 2.7 lakh cell sites covers more than 400,000 towns and villages. The telecom operator has its own NLD and ILD operations, and ISP license.
History of the Company
In 1995, the company was incorporated as Birla Communications Limited, following which the name was changed to Birla AT&T Communications as a result of a joint venture between Grasim Industries and AT&T Corporation. The company started operations in Maharashtra and Gujarat circle in 1997. In 2000, it merged with Tata Cellular Limited to acquire original license to operate in the Andhra Pradesh circle. The company changed name to Idea Cellular Limited and launched “Idea” brand name. It also started operations in Delhi and surpassed the 2 million subscriber mark in 2003.
After hitting the 5 million subscriber mark in 2005, the company turned profit positive. Idea became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire shareholding in the company to the Aditya Birla Group in 2006. It also crossed the 10 million subscriber mark. Idea became pan-India operator in 2009 and launched 4G LTE services in all four Telecom service areas of South India. In 2017, the company completed pan-India 4G rollout by launching in Mumbai.
Management of the Company
Himanshu Kapania - Managing Director
Himanshu has been the Managing Director (MD) at Idea since April 1, 2011. He was associated with Idea from 1997 to 2003, where he looked after the operations in the service areas of Maharashtra and Gujarat and launched services in Delhi. Himanshu has been working with Idea since September 2006. Prior to working with Idea, he was associated with Reliance Infocomm as Chief Executive Officer for Northern Operations covering Punjab and Haryana for 3 years. He has worked with other companies like Network Ltd., Shriram Honda and Toyota. Himanshu holds a Bachelor degree in Electrical and Electronics Engineering from Birla Institute of Technology and is an alumnus of Indian Institute of Management, (IIM) Bangalore.
Idea Cellular Listing and Indices
The stocks of Idea can be bought and sold on the two major stock exchanges in the country - National Stock Exchange and Bombay Stock Exchange. The codes for the same are mentioned below.
BSE - 532822
NSE - IDEA
ISIN - INE669E01016
Sector - Telecommunication
Ideal Cellular forms a part of different indices and they are mentioned below:
- Nifty 100
- Nifty 200
- Nifty Next 50
- Nifty FMCG
- Nifty 500
- S&P BSE 200
- S&P BSE 500
Suman Tower, Plot No. 18, Sector 11
Gandhinagar – 382 011
Tel: +91 79 6671 4000
10th Floor, The Birla Centurion,
Plot no.794, B Wing,
Pandurang Budhkar Marg,
Worli, Mumbai: 400030,
Tel: +91- 95 9400 4000
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