Vodafone Idea Shares Plunge 3 Per Cent After Net Loss Widens To Rs 7,840 Crore In Q1
Vi's revenue from operations rose by a marginal 2 per cent to Rs 10,655 crore in the first quarter, compared with Rs 10,410 crore in the same quarter of last year
Shares of Vodafone Idea Ltd (Vi) plunged over 3 per cent to Rs 7.8 in early morning trade on Wednesday after the telco’s net loss widened 7 per cent to Rs 7,840 crore in the April-June quarter (Q1). Vi, during the same period last year, clocked a net loss of Rs 7,297 crore, the telecom major said in an exchange filing. The debt-ridden firm’s revenue from operations rose by a marginal 2 per cent to Rs 10,655 crore in the first quarter, compared with Rs 10,410 crore in the same quarter of last year.
At 11.40 am, shares of Vi were trading at Rs 7.84 apiece, down 2.49 per cent, on the BSE on Wednesday.
Its average revenue per user (ARPU), a key growth matrix of telecom operators, increased to Rs 139 during the June quarter from Rs 128 a year ago. "The eighth consecutive quarter of growth in average daily revenue, ARPU and 4G subscribers clearly reflects our ability to effectively operate and compete in the market," VIL CEO Akshaya Moondra said.
The total subscriber base of Vi dropped to 22.14 crore at the end of June 2023 from 24 crore a year ago. The 4G subscriber base of the company, however, grew by about 3 per cent on year-over-year to 12.29 crore at the end of June 2023 from 11.9 crore.
"We remain engaged with our lenders for further debt fundraising as well as with other parties for equity or equity-linked fundraising to make required investments for network expansion, including 5G rollout," Moondra said.
The capital expenditure of the company during the June quarter stood at Rs 450 crore. The company, which added around 1,000 more 4G mobile sites during the quarter, is yet to roll out a 5G network. Debt from banks and financial institutions stood at Rs 9,500 crore, and money raised through debt instruments stood at 1,660 crore. With cash and cash equivalents of Rs 250 crore, the net debt stood at Rs 2,11,510 crore.
Meanwhile, Vi has received funding assurance of up to Rs 2,000 crore from a promoter group entity, the company said in a regulatory filing on Monday.
"The Company has received a communication from a promoter group entity confirming that in the event of any fund requirement for meeting its impending payment obligations by the Company, it shall provide direct or indirect financial support to the extent of Rs 2,000 crore," Vodafone Idea said in the filing.
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