Vodafone Idea Q2 net loss narrows to Rs 7,218 crore on lower provisioning

Vodafone Idea’s net loss narrowed to Rs 7,218 crore within the second quarter of economic yr 2021 on account of lower provisioning however flat income, and subscriber loss. Limited 4G conversions additionally continued to weigh on its efficiency.

In the identical quarter final yr, Vodafone Idea had posted a document Rs 50,921 crore net loss due to Rs 25,677-crore-plus provisioning for adjusted gross income dues. Exceptional gadgets within the previous quarter have been Rs 767 crore on account of integration and merger-related prices and impairment of belongings.

While rival Bharti Airtel reported highest-ever quarterly income due to buyer additions and excessive knowledge volumes, Vodafone Idea’s income remained flat on sequential and year-on-year foundation. The telecom firm reported income of Rs 10,791 crore within the second quarter of FY21.

Also, finance prices grew 26 per cent to Rs 4,700 crore on year-on-year. Lenders are looking for a rise in curiosity rate due to score downgrades and the corporate mentioned its potential to proceed as going concern relies upon on profitable negotiations with banks for refinancing of loans and ensures.

Operationally, it was a weak quarter as Vodafone Idea’s subscriber base declined to 271.8 million in within the second quarter of FY21 from 279.8 million in Q1FY21. Subscriber churn elevated to 2.6 per cent (versus 2.0 per cent in Q1FY21).

The telecom firm reported 4.3 per cent sequential improve in common income per consumer (ARPU) to Rs 119 within the second quarter. The variety of 4G subscribers elevated 2 per cent to 106 million sequentially, however knowledge volumes declined in the identical interval.

“While we continue to face Covid-19 telecom challenges, Q2FY21 showed signs of recovery with a gradual improvement in economic activities. We are executing on our strategy and our cost optimisation exercise has already started to yield incremental savings. We have also initiated a fund raising exercise to support our strategic intent. Further, we continue to interact with the government seeking long term solutions to the critical challenges, which the industry faces,” Vodafone Idea managing director Ravinder Takkar mentioned.

Vodafone Idea has adjusted gross income legal responsibility of Rs 58,254 crore after the apex courtroom rejected the telecom firm’s plea for reassessment of dues.

Vodafone Idea has to date paid Rs 7,850 crore in direction of AGR dues. “The cumulative amount paid by us till date exceeds 10 per cent of the total liability and accordingly, we believe, the next instalment would be payable only by March 31, 2022,” the corporate mentioned.

On Indus-Bharti Infratel merger, the corporate mentioned it could monetise its 11.15 per cent stake in Indus Towers on completion of the mentioned merger. “The value of Vodafone Idea’s 11.15 per cent stake equates to a cash consideration of approximately Rs 38 billion (Rs 3,800 crore) currently,” it mentioned.

The firm not too long ago unveiled a brand new model identification ‘Vi’, because the struggling telco regarded to rediscover itself submit the apex courtroom’s ruling on previous statutory dues.

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