Idea Cellular |
forex loss weighs on bottom-line |
ACCUMULATE
CMP: Rs91 Target Price: Rs105
n Revenue grew 2.2% qoq to Rs46.2bn (in line with our est.), primarily due pronounced seasonally weak quarter
n Q2FY12 EBIDTA at Rs11.9bn (our est. 12bn), PAT at Rs1.0bn (our est. Rs1.3bn). Higher interest, depreciation charge pertaining to 3G spectrum and forex loss of Rs313mn dented the bottom-line
n Traffic on network declined 2.2%. ARPU declined to Rs155 v/s Rs 160 in Q1FY12. MOUs declined 7.8% to 364 v/s 391 subsequently ARPM improved 4.1% qoq to Rs0.43
n Valuations at 7.9x & 6.4x EV/EBIDTA for FY12E & FY13E respectively. We reiterate our positive view on the stock, retain ACCUMULATE with target price of Rs105
Regards,
Naval Seth |
Research Associate | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : naval...@emkayglobal.com |
Board No. : +91-22-66121212 | Extn. : 414 | DID : 66242414 | Mob : +919930468398 | |
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