Vodafone Idea Q2 loss narrows sequentially to ₹7,132 cr; ARPU improves to ₹109
2 min read 12 Nov 2021, 03:21 PM ISTVodafone Idea Q2 results: Its revenue from operations mean while fell nearly 13% to ₹9,401 crore for the period under review
PremiumVodafone Idea today reported a consolidated net loss of ₹7,132 crore in the second quarter ending September. The loss was ₹7,319 crore in the previous June quarter and ₹7,218 crore in the last year period.
Its revenue from operations mean while fell nearly 13% to ₹9,401 crore for the period under review as against ₹10,786 in the same period last year.
However, when compared with the previous quarter revenue rose nearly 3% from ₹9,144 crore, supported by the gradual resumption of economic activity post severe second wave of Covid.
“During the last quarter, we witnessed a recovery in our operating momentum as the economy has started to gradually open up aided by the ongoing rapid vaccination drive. We continue to improve our 4G subscriber base on the back of superior data and voice experience on Vi GIGAnet, India’s fastest mobile network, which is testified through consistent top rankings in Ookla and TRAI. We continue to focus on executing our strategy to improve our competitive position and win in the marketplace," said Ravinder Takkar, MD & CEO.
Average revenue per user (ARPU) per month during the quarter improved to ₹109, up 5.3% vs ₹104 in Q1FY22.
VI's EBITDA (earnings before interest, tax, depreciation and amortisation) for the quarter improved to ₹3,863 crore, up 4.2% quarter-on-quarter, aided by improvement in revenue which was partially offset by increase in customer acquisition costs due to higher gross additions during the quarter and other inflationary cost increases. EBITDA margins during the quarter stood at 41.1%.
The total gross debt (excluding lease liabilities and including interest accrued but not due) as of September 30, 2021 stands at ₹1.94 lakh core, which includes deferred spectrum payment obligations of ₹1.08 lakh crore, AGR liability of ₹63,400 crore that are due to the government and debt from banks and financial institutions of ₹22,770 crore.
Cash and cash equivalents at the end of September quarter stood at ₹250 crore and net debt stood at ₹1.94 lakh crore.
On the operational front, Vodafone Idea's subscriber base now stands at 253 million as compared to 255.4 million in the June quarter, a decline of 2.4 million.
However, the 4G subscriber base saw healthy addition of 3.3 million, with overall 4G base now at 116.2 million. Subscriber churn has also improved to 2.9% in the second quarter as against 3.5% in Q1FY22.
The company said it has increased the entry level prepaid pricing plan from ₹49 to ₹79, in a phased manner, as well as increased the tariffs in some postpaid plans.
On Friday, Vodafone Idea shares were up 5.08% at ₹10.35 in noon deals on NSE.
