Barclays maintains 'Equal-weight' rating on Idea

Barclays has maintained its 'Equal-weight' rating on Idea Cellular and set a target of Rs 100. Idea's March '12 quarter revenue of Rs 5,370 crore was in line with the strong volume growth of 9.1% q/q, offsetting the RPM decline of 2.1% q/q.

EBITDA margin decline of 140 bps q/q was due to a one-off licence and WPC charges which, if normalised, could have led to a margin expansion of about 120bps.

Clearly, despite increased aggression from Bharti, Idea has remained disciplined.

"While operating performance has remained strong for Idea, the concerns on regulatory risks force us to maintain a more cautious stance," Barclay's said in a note to clients.