Vodafone Idea reduces loss to Rs 7,176 crore in July-Sept quarter
Vodafone Idea has reduced its losses to Rs 7,176 crore in the July-September quarter of the current financial year from Rs 8,738 crore in the same quarter last year.
Stressed telecom Vodafone Idea (VIL) shares plunged nearly 4 per cent on Wednesday after the company reported a staggering Rs 73,878 crore of net loss for the fiscal ended March 2020.
The stock tanked 3.77 per cent to Rs 10.25 on BSE.
VIL reported a staggering Rs 73,878 crore net loss for the fiscal ended March 2020 – the highest ever by any Indian firm. The firm has to pay Rs 51,400 crore dues after the apex court ordered the non-telecom revenues to be included in calculating statutory dues, said the liability has “cast significant doubt on the company’s ability to continue as a going concern”.
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The company’s subscriber base declined to 291 million in fourth quarter from 304 million in the previous quarter while average revenue per user improved to Rs 121 from Rs 109 in the same period.
It has sought 20 years to clear the dues and said its survival depends on the court verdict and successful negotiations with lenders. Vodafone Idea breached debt covenants as on March-end, limiting its ability to generate fresh funds to settle its dues.
In a regulatory filing, Vodafone Idea (VIL) reported widening of March quarter net loss to Rs 11,643.5 crore. Its losses stood at Rs 4,881.9 crore in the same period a year ago and Rs 6,438.8 crore in previous October-December quarter.
The Department of Telecom (DoT) estimates the firm’s adjusted gross revenue (AGR) dues at Rs 58,254 crore for period up to FY 2016-17, but the company put the dues at Rs 46,000 crore “after adjustment of certain computational errors and payments made in the past not considered in the DoT demand.”
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