Idea Cellular, third largest telecom company in subscribers, posted a 39 per cent decline in net profit to Rs 575.6 crore in the quarter ended March, owing to higher finance costs. The net profit was Rs 941.8 crore in the same quarter a year before.
The company, which has 184 million mobile subscribers, posted a 38.9% fall in profit to 5.76 billion rupees ($86.60 million) in the three months to the end of March, hurt by higher financing and spectrum fees of its 4G network.
Idea, along with Bharti Airtel and Vodafone's India unit have been heavily spending on ramping up 4G networks in anticipation of Reliance Industries 4G telecom service launch later this year.
Average revenue per user (Arpu) was marginally lower at Rs 129 during March 2016 compared with Rs 135 in March 2015 quarter.
The stock opened at Rs 123 and touched a low of Rs 121. At 10:40am, over 3.2 million shares were traded on both the stock exchanges.