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Shares of Idea Cellular fell nearly 4 percent after the company’s quarterly net profit slipped to 1.80 billion rupees from 2.20 billion rupees a year ago.
Idea Cellular lagged market estimates as quarterly profit fell on lower call prices, but the firm said improving economic conditions and 3G services would boost revenue in future quarters.
Shares in the company closed 3 percent lower at 69.65 rupees.
Idea has managed to keep its investors happy, posting returns of over 20 percent for the year. Do you think it is the right time to invest in this counter?
Idea Cellular rose nearly 4 percent after Emirates Telecommunication Corp, the Arab world’s second-largest telecom operator by market value, said it had not ruled out investing in the company.
However, the Abu Dhabi-based operator said that it does not expect a deal with Reliance Communications in 2010.
Reliance Communication is the only major local cellular carrier without a foreign strategic investor in the world’s fastest-growing mobile market.
Shares in Bharti Airtel, India’s leading telecom firm, gained 3 .4 percent on Wednesday and ended as the top Sensex gainer, even as the overall Mumbai market closed weak.
Other players like Reliance Communications and Idea Cellular managed to close in green as well.
Bharti Airtel was also the top Sensex loser. Smaller competitor Idea Cellular closed 2.85 percent lower.
Shares of major telecom players plunged on Thursday, pulling the BSE Technology Index down 2.8 percent.
Market participants are worried that lower tariffs and increasing competition could hurt profitability of such firms. On Monday, Reliance Communications cut call charges across all networks to 50 paise/min.