Idea Cellular shares shrink almost 6% after net decline in Jan-March quarter

Shares of telecom operator Idea Cellular tumbled nearly 6% on Friday after the company's net profit declined 39% in the March quarter.

The stock declined 5.64% to Rs 119.05 on the BSE. On the National Stock Exchange (NSE), it slumped 4.9% to Rs 120.30.

At 1246 hours, the shares of the company were trading at Rs 117.60, down Rs 8.95 or 7.07% on the BSE. On the National Stock Exchange (NSE), the shares traded at Rs 118.60, down Rs 7.90 or 6.25%.

Idea Cellular's net profit dived 39% to Rs 575.6 crore in the said quarter due to a spike in finance costs.

The company had posted a net profit of Rs 941.8 crore in January-March of 2014-15.

Revenue of the company, however, increased 12.6% to Rs 9,483.9 crore during the reported quarter compared with Rs 8,422.5 crore a year earlier.

Net debt of the company as on March 31, 2016, stood at Rs 38,750 crore, including all deferred payment liability to be paid to the government for spectrum purchased in auctions.

For the year to March 2016, the company's consolidated net profit declined 3.5 per cent to Rs 3,079.9 crore, from Rs 3,192.9 crore a year ago.