1 min read.Updated: 29 Oct 2020, 06:59 PM ISTIshita Guha
The telecom operator’s revenue from operations declined marginally to ₹10,791 crore from ₹10,844 crore a year ago
Vodafone Idea posted India’s largest-ever quarterly net loss of ₹50,922 crore during the same period last year and was ₹25, 460 crore in the previous quarter
Vodafone Idea Ltd on Thursday reported a net loss of ₹7,218 crore in the September quarter. It had posted India’s largest-ever quarterly net loss of ₹50,922 crore during the same period last year. Net loss was ₹25, 460 crore in the previous quarter.
The telecom operator’s revenue from operations declined marginally to ₹10,791 crore from ₹10,844 crore a year ago. However, revenue was up 1.2% sequentially, as the economy started reopening after the nationwide lockdown in the June quarter.
The average revenue per user (Arpu) rose to ₹119, up from ₹114 in the June quarter.
The company's subscriber churn increased to 2.6% versus an all-time low of 2% in the June quarter, as market activity increased during the quarter with lifting up of restrictions.
The telco’s subscriber base declined to 271.8 million in July-September, from 279.8 million in Q1FY21. However, gross additions improved with gradual reopening of retail stores.
Earnings before interest, tax, depreciation and amortisation (Ebitda) for the September quarter was at ₹4,150 crore.
Though the telco plans to raise ₹25,000 crore, in a combination of debt and equity, analysts fear the said capital can help Vodafone Idea sustain only for two years.
“While we continue to face covid-19 induced challenges, Q2FY21 showed signs of recovery with a gradual improvement in economic activities. We are executing on our strategy and our cost optimization exercise has already started to yield incremental savings," said Ravinder Takkar, managing director and chief executive, Vodafone Idea.
During the quarter, the board of Bharti Infratel Ltd approved its merger with Indus Towers Ltd, where Vodafone Idea owned an 11.15% stake. The merger deal will allow the cash-starved Vodafone Idea to divest its stake in Indus Towers for ₹4,000 crore.
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