Home / Companies / Company Results /  Vi’s Q2 losses widen to 7,592 cr

NEW DELHI : Vodafone Ideamissed estimates as itwidened its lossesby6% on-yearto 7,592.5crorein the quarter ended Septemberfrom a loss of 7144.6 crore in the previous year,even as its revenue rose by12.8% on-yearto 10,614 crorefrom 9406.4 crorein the same period.

On a sequential basis, net income was lower by 4% from 7,295.7 crore for the quarter ended June, but revenues were upby about 2% sequentially from Rs10,410 crore.

The No 3 carrier reported an average revenue per user of Rs131, higher by2% fromRs 128in the previous quarter. ARPU is the key profitability parameter for telecom service providers.VI’s ARPU is the lowest amongst peers, with Airtel leading the pack at 190 per month.

However, the carrier said that on a year-on-year basis, ARPU grew by 19.5% aided by tariff hikes and migration of subscribers to unlimited plans.

Earnings before interest, tax, depreciation andamortisationor EBITDAwhich is a key performance indicator shrunk toRs 4,097.5 crorefor the quarterfrom 4,328.4 crore in the previous quarter,but itwas higher than 3,862.9 crorein the quarter ended September 2021.

EBITDA wasdriven primarily by higher revenue and savings in spectrum usage charges,offset by higher network expenses– of about 1940 crore–andcustomer acquisition costs, the carrier said.

View Full Image

Network expenseswere impactedsinceaccountingfor operating lease expenses has changed from rentals to depreciation on the right-of-use asset and finance cost for interest accrued on lease liability.Capexspendin the quarter rose to 1210 crore, up from 840 crore in the previous quarter.

AkshayaMoondra, chief executive officer at Vodafone Idea Limited, said that the carrier reported fifth consecutive quarter of revenue growth and 4G subscriber addition. With1.4million additionsin the quarter, the total number of 4G subscribers stood at 120.6 million.Its total customer base was234.4 million as of September 2022, lower than 255.4 million users as of the same quarter last financial year.

“Such performance is primarily driven by the continued increase in 4G subscriber base on the back of superior data and voice experience offered by ViGIGAnet," he said.

The Aditya Birla Group promoted telecom services provider said that its board has recently approved issuance of Optionally Convertible Debentures amounting to 1600 croretoits tower vendorATC India.The carrier owes dues of up to 3,000 crore to ATC and about 7,000 crore to its other vendor provider Indus Towers, with which it hasentered into payment plan with softer terms.

It is awaiting conversion of interest on AGR dues of 16,000 crore into equity to be owned by the government as part of the relief package provided by the government last year. Mint reported on Thursday that the government has asked the carrier’s promoters to bring in more equity into the company before it proceeds with the conversion.

The issuance of OCDs to ATC is contingent on the conversion of the interestinto equity by the government.

Vodafone Idea needs to raise 20,000 crore in debt and equity from investors to plough into 5G deployments andoperations in order tostay afloat in a competitive Indian telecoms market,where rivals Reliance Jio and Bharti Airtel have launched 5G services.

Moondrasaid,“We continue to remain engaged with our lenders and investors for further fund raising to make required investments for network expansion and 5G rollout."

Thecarrier’sgross debtwas at 2.2 trillion,comprising deferred spectrum payment obligations of 1.36trillion,including 17,260 croretowards spectrum acquired in recent spectrum auction andadjusted gross revenueliability of 68,590 crorethat are due to thegovernment. Debt frombanks and financial institutionsstands atRs 15,080 croreandCashandcash equivalents were 190 crore.

The carrier’s leased liabilities have ballooned to 26,113 crore as of September 2022 from 11,432 crore in March 2022, and deferred payment obligations rose to 19,541 crore from 17,311 crore in the same period.


Gulveen Aulakh
Gulveen Aulakh is Senior Assistant Editor at Mint, serving dual roles covering the disinvestment landscape out of New Delhi, and the telecom & IT sectors as part of the corporate bureau. She had been tracking several government ministries for the last ten years in her previous stint at The Economic Times. An IIM Calcutta alumnus, Gulveen is fluent in French, a keen learner of new languages and avid foodie.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Recommended For You
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout