- SC is expected to hear the modification pleas of the telcos including Vodafone Idea on Friday
Vodafone Idea (VIL) has posted a loss of Rs 6,453.2 crore for the third quarter of the fiscal, dragged down by customer losses, high costs and one-time expense related to its statutory dues.
The company warned of its ability to run operations remains a going concern. “…to be noted that material uncertainty exists that cast significant doubt on the Company’s ability to continue as a going concern and its ability to generate the cash flow that it needs to settle, or refinance its liabilities including those relating to the SC AGR Judgement and guarantees as they fall due,” said the operator in a statement on Thursday.
The telco had posted the largest loss of India Inc in previous quarter at Rs 50,897.9 crore in the previous quarter
Analysts had estimated the telco to post a loss of around Rs 4,000 crore but also expected a small uptick in its revenues of about 1.6%.
“Our ability to continue as going concern is dependent on positive outcome of the application for modification of the Supplementary Order before …and subsequent agreement with DoT for the payment in instalments after some moratorium and other reliefs. Pending the outcome of the above matters, the financial results have been prepared on a Going Concern Basis,” it added.
SC is expected to hear the modification pleas of the telcos including Vodafone Idea on Friday.
The operator, born out of the merger of Vodafone India and Idea Cellular, recorded average revenue per user (ARPU), a key market indicator, of Rs 109 compared with the previous quarter’s Rs 107. In comparison rivals Bharti Airtel and Reliance Jio clocked in ARPUs of Rs 135 and Rs 128.4 for the third quarter, respectively.
Revenue clocked by the telco for the October -December quarter was Rs 11,089.4 crore, a 2.3% increase compared to Rs 10,844 crore, in the previous quarter, on the back of better ARPU .
VIL is gasping to survive with its two promoter groups refusing to infuse anymore equity and Nick Read-Vodafone Group’s CEO reiterated that there will be no funds infusion anymore from the parent.