IndiGo opens in green, Idea Cellular stocks tumble over 3% ahead of Q3 results
Third quarter results of listed telecom and aviation 'biggies' will be announced on Wednesday. Here's how the stock price has performed.
Investors in the telecom arm of the Aditya Birla group were nervous on the BSE Sensex on Wednesday morning ahead of the Q3 FY18 results. While IndiGo’s share price opened in green.
Share price of aviation major, IndiGo opened 0.46% or 5.50 points higher from its last closing price at Rs 1199.25 per share on the BSE Sensex.
However, shares of Idea Cellular opened 2.16% or 2.15 points lower at Rs 97.25 apiece.
In pre-market open activity, Idea’s shares were trading 0.40% lower at Rs 99 apiece on the BSE Sensex.
IndiGo’s share price were also down 0.34% or 4.10 points at Rs 1193.75 per share.
With the entry of Reliance Jio in September 2016, the incumbent operators – Airtel, Idea and Vodafone have reportedly witnessed a drop in net profit.
Airtel’s net profit slipped for the seventh straight quarter in Q3 FY18 as TRAI moved to cut IUC charges to 6 paise per minute. The telecom major’s net profit stood at Rs 306 crore in the quarter ending December 31, 2017.
Airtel has a total subscriber base of over 28 crore, as per TRAI data as on November 30, 2017. Idea Cellular has a much smaller base of just over 19 crore subscribers.
Surprisingly enough, Airtel was listed as one of the biggest losers in early trade session on the BSE Sensex. Share price of Airtel dropped 17.80 points or 3.63% to Rs 473.10 at 0930 hours.
Expectations around Idea’s Q3 results estimate yet another weak quarter for the telecom operator.
During the third quarter, Idea announced loads of attractive deals and discounts on monthly tariff plans in different telecom circles.
Idea Cellular is likely to report a wider loss in third quarter at Rs 1,340 crore, according to the Reuters poll. Revenue is likely to decline 21%.
As for the aviation sector in India which has been dealing with the ups and downs of jet fuel prices is also expected to witness some turbulence while reporting third quarter results.