Vodafone Idea's Loss Widens To Rs 25,460 Crore In June Quarter
Vodafone Idea's revenue from operations declined 8 per cent to Rs 10,659.30 crore
Vodafone Idea's annual loss widened to Rs 25,460 crore in quarter ended June 30 from loss of Rs 4,874 crore in the same quarter last year. Vodafone Idea's revenue from operations declined 8 per cent to Rs 10,659.30 crore, the company said in an exchange filing after market hours on Thursday. During the quarter Vodafone Idea made payment of Rs 6,854.40 crore in three instalments to the department of telecommunications (DoT) towards Adjusted Gross Revenue (AGR) related dues, the company added.
The company also recognized and additional charge of Rs 19,440.50 crore as exceptional item towards the total estimated liability based on the DoT demands amounting to Rs 58,254 crore, consequently the net worth of the company has turned negative during the quarter and stands at (19,491.80 crore), Vodafone Idea said.
Vodafone Idea's operations were also adversely affected by the outbreak of Coronavirus (COVID-19) pandemic.
"The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance and a slowdown of economic activities," Vodafone Idea said in a statement.
"Subscriber churn reduced to an all-time low of 2.0 per cent (3.3 per cent in Q4FY20), as net disconnections were lower during the quarter. However, the gross additions were severely impacted by closure of retail stores during the nationwide lockdown resulting in subscriber base decline to 279.8 million in Q1FY21 from 291.1 million in Q4FY20, Vodafone Idea added.
Vodafone Idea's average revenue per user (ARPU) per month, a key metric of how much a telecom company earns per month from a subscriber came down to Rs 114 per month from Rs 121 per month in the corresponding period last year.
Gross debt (excluding lease liabilities) as of June 30, 2020 was Rs 1,18,940 crore, including deferred spectrum payment obligations due to the Government of Rs 92,270 crore. Cash & cash equivalents were Rs 3,450 crore and net debt stood at Rs 1,15,500 crore, the country's third largest wireless operator added.
Vodafone Idea shares ended 0.72 per cent higher at Rs 8.25, underperforming the Sensex which rose nearly 1 per cent ahead of its results.