Mumbai: Idea Cellular on Friday reported 41 per cent fall in its consolidated net profit at Rs 105.76 crore in the second quarter ended September 30, on account of larger interest costs and forex losses.

The Aditya Birla Group Company's interest costs rose to Rs 253.8 crore, while forex losses stood at Rs 31.3 crore.

"The profit after tax has fallen because of larger interest cost and forex loss. Also, during the last year, we invested Rs 10,000 crore in 3G services."

"This investment has happened primarily on account of larger debt, and because of this debt, our interest component has gone up significantly," Idea Cellular Managing Director Himanshu Kapania said here on Friday while announcing the unaudited results for the period ended September 30.

On standalone basis, the company's net profit fell to Rs 73.94 crore from Rs 165.98 crore in the corresponding period last fiscal.

However, total income of the mobile services provider rose to Rs 4,619.92 crore during the quarter under review, up from Rs 3,659.19 crore in the year-ago period.

Kapania said, "... our Ebitda over the past one year has improved by 37 per cent."

The standalone Ebitda margin compressed by 1 per cent to 22.4 per cent over the year-ago quarter due to higher manpower costs by way of increments and network expenses.

On a year-on-year basis, the Ebitda grew to Rs 1,043.6 crore in comparison to Rs 761.8 crore in Q2 of FY11, a rise of 37 per cent. Similarly, despite high investment in 2G, 3G and 3G spectrum auction, it managed to grow its Ebitda to Rs 371 crore, reflecting a growth of 58 per cent.

Kapania said Idea plans to launch branded full-featured affordable Android phones after Diwali.

"We don't mean to get into handset business. But we would like to make smartphones more affordable, with a view to help migrate our customers to 3G. We expect revenue to rise once 3G usage picks up. Our 3G network is being strengthened."