14-06-2012, 02:03 PM
IDEA CELLULAR LIMITED
Revenue Market Share
The Company remains focused to improve its revenue market share. From 5th ranked operator in FY09, company improved its national standing and as per latest TRAI release, is positioned as No. 3 Indian operator, in terms of gross revenues. The revenue market share for the company stands at 13.2% in FY11 compared to 12.4% in FY10, the testimony to its growing performance. Company was placed among top two operators in terms of incremental gross revenue market share in FY11. In its established service areas Company commands a revenue market share of 17.7%.
Balance Sheet
During the year, the paid-up equity share capital of the Company increased by ` 34.34 Mn, due to issuance of equity shares to the employees pursuant to exercise of stock options granted under Employee Stock Option Scheme, 2006. The total shareholders’ funds stood at ` 122,980 Mn as at March 31, 2011. The Gross Block and Net Block [including Capital Work in Progress (CWIP)] stood at ` 336,977 Mn and ` 261,316 Mn respectively as at March 31, 2011. Treasury investments in mutual funds decreased by ` 1,104 Mn during the year and stood at ` 10,200 Mn as at March 31, 2011. Net Current Liabilities increased as at March 31, 2011 and stood at ` 24,773 Mn
Opportunities, Risks, Concerns and Threats
The Indian wireless sector is going through a phase where the volume growth in terms of total minutes of usage in the sector is healthy, but the continuous decline in the tariffs resulting in a much lower growth in terms of gross revenue for the sector.
However, Idea’s 2G operations are competitively very well placed. Idea is the leader in four service areas viz., Kerala, Maharashtra, Madhya Pradesh and Uttar Pradesh (West), ranks 2nd in three service areas namely Haryana, Punjab and Andhra Pradesh and ranks 3rd in Gujarat. Idea won 3G spectrum in all these strategically important service areas. These service areas, give a combined revenue market share of 23.6%, making Idea the second largest operator in these service areas put together. Idea is also emerging as a strong operator in the service areas of Uttar Pradesh (East) and Rajasthan (ranks 3rd), Delhi, Himachal Pradesh and Bihar (ranks 4th), where it was a late entrant.