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, usually referred to as !, is a
wireless telephony company operating in all the
22 telecom circles in mndia based in Mumbai. mt is
the 3rd largest
M company in mndia behind
Airtel and Vodafone and ahead of state run
player B w
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j mdea· consolidated total revenue grew by 23% YoY
and 0.2% Q-o-Q to `36.6billion.
he growth was
mainly led by contribution from the new launches
andmndus.
j ‡ EBm
A margin declined sharply to 24% in
2QFY11 from 28.3% in 2QFY10.
j ecline in EBm
A is mainly due to higher
network opex.
j ‡ mdea·s net profit declined 18% YoY to `1.8
billion.
his is mainly on account of lower
EBm
A.
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j mdea·s 2QFY11 results were weaker due to

seasonality as traffic growth was muted during
the quarter, which led to growth in revenues
being flat on a QoQ basis.
he margins were
however under pressure mainly due to higher
personnel expenses on account of wage revision.

oing forward as well we expect the margins to
be under pressure on account of 3
related
expenses. Further we also expect the net profits
to be under pressure on account of higher
depreciation and interest due to 3

j mn view of this, we maintain our ´H w
recommendation with a price target of `76.Based
on out 
 valuation on F method, we have
valued mdea ellular as under
j 


j Valuation F target

ore business 53
mndus
owers 23

otal 76

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j
he established circles continue to contribute
major share, as high as 92%, to total revenues of
mdea.
hese circles recorded 17.6% YoY growth,
however revenues declined sequentially to
`33,507 million.
he margins have declined by 2%
from 29.2% in 2QFY10 to 27% in 2QFY11.
he
margins have declined mainly on account of the
amalgamation of pice circles (being lower
margins circles) and higher spectrum charges.
mdea continues to experience declining market
share in its established circles.
 
ME EVmE
j
he company has its retail outlets under the "My
mdea" banner.
he company has also been the
first to offer flexible tariff plans for prepaid
customers. mt also offers
 services in urban
areas.
j mdea ellular won the
M Association Award
for "Best Billing and ustomer are olution" for
2 consecutive years