Keywords: Vodafone Idea, Share price, Corporate
Separately, Vodafone Idea announced that it has sought to use a 30-day grace period to pay a Rs 1,680 crore installment for the spectrum auction along with interest. A stakeholder promised to give the telecom operator Vodafone Idea Ltd up to Rs 2,000 crore on Monday in order to help it meet its financial obligations.
As of June 30, the business had a total gross debt of Rs 2.12 lakh crore, which included adjusted gross revenue dues to the government totaling Rs 66,860 billion and postponed spectrum payment commitments totaling Rs 1.34 lakh crore.
Bank and financial institution debt totaled Rs 9,500 crore, while the value of optionally convertible debentures was Rs 1,660 crore.
In a separate statement, Vodafone Idea stated that it has suggested to the Department of Telecommunications that it pays an Rs. 1,680 crore installment for the spectrum auction together with interest by using a grace period of 30 days. It must be paid by August 17. The company announced a bigger first-quarter loss earlier in the day due to subpar 4G customer growth and greater costs.
The company’s combined loss after tax for the three months ended June 30 was Rs 7,840 crore, up from Rs 7,297 crore in the same period last year.
The average revenue per user (ARPU), a crucial indicator for telecom companies, increased for the company to Rs 139 from Rs 135 last quarter and Rs 128 in the prior quarter, thanks in part to “subscriber migration to higher ARPU plans,” it added.
Vodafone Idea’s overall subscriber count decreased to 221.4 million from 225.9 million sequentially while its 4G subscriber base barely increased by 0.2% to 122.9 million.
While revenue increased by 2.4% to Rs 10,656 crore, expenses increased by 4% annually to Rs 18,513 crore.
Vodafone Idea has been unable to sign a funding agreement because of its heavy debt to the government and spectrum obligations. When billionaire Kumar Mangalam Birla rejoined the company’s board in April, there was speculation that the Birla Group may inject capital.
“We remain engaged with our lenders for further debt fundraising as well as with other parties for equity or equity-linked fundraising to make required investments for network expansion, including 5G rollout,” CEO Akshaya Moondra stated in a statement.
In advance of the news, Vodafone Idea shares ended the day 0.6% down.
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https://www.businesstoday.in/latest/corporate/story/vodafone-idea-secures-rs-2000-cr-to meet-payment-obligations-q1-loss-widens-394145-2023-08-14(last visited on 15-08-2023)
Written by- Kameshwari Gaur , College name- Mahatma Jyotiba Phule Rohilkhand, University Semester- 5th semester (3-year Ll.b. program)
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