Idea posts net profit of Rs.76 crore for 2005

13 Sep 2005

Mumbai: Idea Cellular, the country''s fifth-biggest wireless operator, has posted a net profit of Rs76 crore in FY05 and according to company officials it aims to take its turnover to more than Rs3,000 crore in FY06. Idea''s subscriber base has crossed the 6mn mark and is likely to touch 7mn by March''06, officials said.

The AVBirla group (ABG) recently hiked its stake in Idea Cellular to close to 50% by buying a portion of US cellular operator Cingular''s stake through Indian Rayon (now called Aditya Birla Nuvo) at Rs17.5 per share.

The proposed merger of Indo-Gulf with Indian Rayon will consolidate the AV Birla holding in Idea under one entity, the newly-christened Aditya Birla Nuvo. Idea took over Escotel last year gaining additional subscribers and entry into newer circles. According to ABG officials the group is keen on retaining its shareholding in Idea. Idea''s subscriber numbers have risen to about 6mn from less than 2mn in FY03, while revenue has grown to just over Rs2,000 crore from less than Rs1,000 crore in the same period.

The company''s earnings before interest, depreciation, and tax more than doubled to Rs874 crore in FY05.