Idea Could Exit Tower Biz for Cash Comfort
both capital and operating expenditure.
Idea, as of now, has a recruitment freeze and will not hire unless necessary. “Huge amount of effort within the company has been done across all circles to bring down our operating costs,” added the MD.
Brokerage Credit Suisse noted that the decline in Idea’s operating profit was sharper than Bharti Airtel’s 16% on-quarter fall.
JM Financial said Idea’s operating profit will decline further in the current January-March quarter due to Jio’s free services.
Kapania said Idea has been operating at a capex of 1820% of revenue and would like to bring it down to the earlier level of 12-15% of revenue. He declined to comment on the ongoing merger talks with Vodafone India. He said the industry is in a consolidation mode and only those that can give integrated offers will survive.