Shares of Vodafone Idea Ltd (VIL) rose over 3% on Thursday after the company reported a narrowing in year-on-year net loss in the September quarter. VIL’s total revenue grew 2% year-on-year. This is in line with MOFSL’s estimates, as the benefits of the tariff increase were offset by the decline in customer base.
According to company report
According to the company report, Ebitda recorded 6% YoY growth, exceeding MOFSL’s estimate of 3%, due to lower network operations and SGA expenses. Ebitda margin also increased by 160 basis points quarter-on-quarter to 41.6%, which was 130 basis points higher than MOFSL’s estimate. However, the company’s loss stood at Rs 7,176 crore, higher than MOFSL’s estimate of Rs 7,000 crore, due to higher finance costs and increased D&A.
second quarter results
Vodafone Idea shares surged 3.39% to hit high of Rs 7.62 on BSE after Q2 results. MOFSL has maintained ‘Neutral’ stance on this stock.
According to MOFSL, Vodafone Idea has applied to the Department of Telecommunications for waiver of bank guarantee of Rs 24,700 crore for spectrum installments. The brokerage believes that VIL’s debt raising may depend on this waiver.
Vodafone Idea’s net debt,
Vodafone Idea’s net debt, with outstanding repayments, increased by Rs 9,300 crore quarterly to Rs 2.12 lakh crore, including liabilities to vendors, banks and spectrum acquisition. VIL owes Rs 2.23 lakh crore to the government, of which Rs 1.52 lakh crore is spectrum and Rs 70,300 crore is AGR dues.
Vodafone Idea’s capex increased to Rs 1,400 crore in Q2FY25 from Rs 760 crore in Q1FY25. Management has estimated capital expenditure at Rs 8,000 crore for the second half of FY25.
According to MOFSL report, VIL’s total subscriber base stood at 20.50 crore, a quarterly decline of 51 lakh compared to Q1FY25, higher than MOFSL’s expectation of a quarterly decline of 40 lakh. This decline was due to increased churn following the tariff hike.
“Vi’s monthly churn increased to 4.5% quarter-on-quarter, which is higher than the churn growth seen by other players in the sector,” MOFSL said.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.