Idea’s disastrous Q3 results underscores motivation for Vodafone merger2 min read . Updated: 14 Feb 2017, 08:04 AM IST
Idea incurred huge capex primarily in acquiring spectrum with the assumption that data will drive growth. Then, Reliance Jio pulled the rug from under its feet
Idea Cellular Ltd’s December quarter results highlight the precarious position the firm is in. Its operating profit is no longer sufficient to cover depreciation charges and interest costs; cash profits aren’t enough to meet enhanced capital expenditure (capex) needs, and debt has gone out of whack.
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