Idea Cellular shares jump after Q1 net beats estimates

Idea Cellular's shares jumped over 3 per cent in early trade on the Bombay Stock Exchange after the telecom operator reported a rise of 57 per cent in net profit for the quarter ended June 30.

India's third-biggest mobile phone operator by users and revenue on Monday reported a net profit of Rs 7.28 billion ($120.8 million) for the first quarter, beating consensus estimates.

Analysts had expected Idea, part of India's Aditya Birla conglomerate and nearly a fifth-owned by Malaysia's Axiata, to earn Rs 6.29 billion, according to Thomson Reuters I/B/E/S.

Cheering the news, shares of the company jumped 3.29 per cent to Rs 144.35 on the Bombay Stock Exchange in early trade on Tuesday.

Traders said Idea's profits mainly got a boost from a rebound in voice as well as data realisations without any pressure on volumes.

Announcing the results, Idea Cellular on Monday also said its capex guidance for the year remains at Rs 35 billion.

(Reuters)