Vodafone Idea Ltd in its Q1 FY21 result reported a Net Loss of Rs 25,460 crore. Last year in the corresponding quarter, the debt-ridden telecom player reported a net loss of Rs 4873.9 crore. It is almost a five-fold increase in net loss year-on-year (YoY).
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Vodafone India Limited merged into Idea Cellular Limited (ICL) on August 31, 2018. Consequently, the name of the company has been changed from ICL to Vodafone Idea Limited. Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. Vodafone Idea like many telecoms has been in news lately, because of the AGR Dues Case Pending in the Supreme Court.
You can read more about Telecom AGR Dues here.
Vodafone-Idea’s performance indicators given below show the reduced Subscriber Base and Total Data Subscribers. Other indicators show the increase in BroadBand Usage, Increased Data Volume Usage, Average Data Usage per person, 4G Coverage Population and Total Unique Broadband Towers.
The company’s ARPU(Average Revenue Per User) jumped at the beginning of the lockdown from Rs.109 to Rs.121 but reduced to Rs.114 this quarter. The reason behind this could be the eased restrictions where people started using Commercial/Office Broadband over Personal Data Packs.
“We have rolled out a further cost optimization plan across the company in line with the evolving industry structure and business model. Through this, we plan to achieve Rs. 40 billion of annualized cost savings over the next 18 months. As a step in that direction, we are in the process of organization-wide restructuring“, Vodafone Idea said in its press release.
The company also said “The merger of Indus Towers and Bharti Infratel has received FDI approval. The long stop date on the original agreement has been extended to August 31, 2020. We have the option to monetize our 11.15% stake in Indus on completion of the Indus-Infratel merger“.
Vodafone-Idea’s balance AGR dues were placed at Rs 50,400 crores in the preliminary SC hearing. The final hearing is expected to be on 10th August 2020.
The advent of Jio put a huge blow to other telecoms due to its unconventional pricing. The company report shows its interest and willingness in raising liquidity, paying bank AGR dues in due course of time and expansion in terms of infrastructure. If the company manages to raise investment at the same time price competitively the company can very well manage to get back on its feet.
You can read the Official Result by clicking here.