Provision for regulatory obligations and rising losses at the end of June pushed Vodafone Idea net worth to Rs 19,500 crore. Telecom posted losses of Rs 25,467 crore in the period of April-June, more than nearly twice losses suffered by the firm in the preceding quarter.
The organization said the first-quarter figures were affected by coronavirus-led national lockdown.
“We have recognised a charge of Rs 194.4 billion as an exceptional item towards the total estimated AGR liability, in addition to estimated recognised liability of Rs 460.0 billion as on March 31, 2020,” the telecom firm stated in the report.
Vodafone Idea shares traded down to Rs 8.04 percent on BSE by 2.55 percent, taking overall market cap to Rs 23,103.25 crore.
The EMI estimate of Vodafone Idea will be 30 percent of Ebitda ‘s cash, when the debt load on Rs1.15 lakh crore is already rising. Some 80 per cent of this amount is subject to a two-year moratorium on spectrum reductions, CLSA report concluded.
Operating revenue amounted to Rs 10,659.3 crore for the first quarter of FY2021, compared to Rs 11,269.9 crore for the same duration last year.
Firm has to compensate the telecommunications department for an increase of Rs 50,400 in licensing fees, spectrum usage charges (SUC), taxes and fines.
Vodafone Idea reduced its capital spending on Rs 600 crore by approximately 67 per cent compared to the previous quarter’s Rs 1,820 crore.
The telco has lost 11.3 million subscribers including 1 million 4 G subscribers during the April-June period.ARPU dropped 5.8 percent on-quarter from Rs 121 to Rs 114.
Vodafone Idea is actively searching for advanced capacity growth facilities and technology because the telco is prone to loss of customers due to slow supply of hardware.