Vi reports a net loss of Rs 7,596 crore for the Q2

Revenue for the company increased by 2% to Rs 10,611 crore from Rs 10,407 crore in the June quarter.

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In comparison to the loss of Rs 7,297 crore recorded in the June quarter, telecom company Vi (previously known as Vodafone Idea) posted a net loss of Rs 7,596 crore during the September quarter (Q2FY23) of the current fiscal.

Revenue for the company increased by 2% to Rs. 10,611 crore from Rs. 10,407 crore in the June quarter. EBITDA was Rs.4,093 crore compared to Rs.4,325 crore in the prior quarter.

The Average Revenue Per User (ARPU) increased by 19.5% YoY during the quarter under review from Rs. 128 to Rs. 131, thanks to rate increases and the transfer of users to unlimited plans.

Akshaya Moondra, CEO, Vodafone Idea Limited, said “We are pleased to report fifth consecutive quarter of revenue growth and 4G subscriber addition. Such performance is primarily driven by the continued increase in 4G subscriber base on the back of superior data and voice experience offered by Vi GIGAnet. In the recently held IMC, we showcased a wide range of 5G offerings for our enterprise and consumers on the Vi 5G Live network. Our board has recently approved issuance of Optionally Convertible Debentures amounting to Rs. 16 crore to ATC India. We continue to remain engaged with our lenders and investors for further fund raising to make required investments for network expansion and 5G rollout.”

The total gross debt was Rs 2,203.2 billion, which was made up of Rs 1,366.5 billion in deferred spectrum payment obligations (including Rs 172.6 billion for spectrum purchased in a recent spectrum auction), Rs 685.9 billion in AGR liabilities owed to the government, and Rs 150.8 billion in debt owed to banks and other financial institutions. The telecom operator reported that it had Rs 1.9 billion in cash and cash equivalents and that its net debt totaled Rs 2,201.3 billion.

The company’s subscriber base decreased to 234.4 million during Q2FY23 from 240.4 million during Q1FY23.

However, the number of 4G subscribers increased and as a result, the business reported in a filing with stock markets that the 4G subscriber base now numbers 120.6 million after adding 1.5 million new customers in Q2.

From Rs 840 crore in Q1 to Rs 1,200 crore in the third quarter, capital expenditures increased.