Vodafone’s idea Q4 net Loss Widens to Rs 6985.1 crore vs Rs 4540.8 crore in Q3

Pratik Verma, INN/Hyderabad

@Tragicfonts, @Infodeaofficial

Mumbai: Vodafone Idea’s (Vi) net loss for the business enterprise fourth quarter widened to
Rs 6985.1 crores from Rs 4540.8 crores within the previous three-month amount, hurt by an
exceptional loss, as the absence of Interconnection Usage Charge (IUC) dragged revenue
for the portable operator that once more warned of risks viability.
Total quarterly revenue for the cash-strapped operator fell to Rs9,607.6crores from Rs
10,894.1 crores within the October-December amount, the corporate in an exceeding notice
to the stock exchanges on Wednesday. "There exists material uncertainty concerning the
company’s ability to continue as a going concern that depends on its ability to lift extra funds
as needed, self-made negotiations with lenders on continuing support, refinancing of debts,
monetization of sure assets….," India’s solely loss-making personal operator same.

 Among different risks flagged by the operator was the fate of its plea filed within the
Supreme Court to cut back its adjusted income (AGR) dues from the over Rs5,800 crores
demanded by the medium department, acceptance of its request by the government to defer
payment of Rs8,211.7 crores towards spectrum purchases, that falls due on April 9 2022, and
generation of adequate income from operations that it has to settle/renew its
liabilities/guarantees as they fall due. The public-service corporation added that as a result of
a rating downgrade, sure lenders had asked for an increase of interest rates and extra margin
cash or security against existing facilities. “The cluster has changed correspondences and
continues to be in discussion with the lenders for consequent steps,” it said. The venture
between UK’s Vodafone Group and India’s diversified Aditya Birla Group had proclaimed
an Rs25,000-crore fund-raising last September via a combination of equity and debt, that
hasn’t however been finalised despite holding talks with numerous potential investors for
many months." we tend to area unit in active discussion with potential investors for
fundraising, to attain our strategic intent," same Vodafone plan administrator Ravinder

The company managed to slow its user losses to two million within the first complete
quarter, whereas adding over four million 4G subscribers. Vi completes the quarter with
267.8 million subscribers as against rivals Jio and Airtel UN agency with 426.2 million and
340 million, severally.
It enlarged its quarterly earnings before interest, tax, depreciation & amortization (Ebitda) to
Rs4401 crores from Rs 4286.2 crores as lower expenses.
In addition, the public-service corporation is targeting Rs. 4000 crores of annualized price
savings by the top of this civil year. “Through many initiatives, we’ve already achieved
around sixty-fifth of the targeted annualised savings on a run-rate basis by the top of this
fiscal year 2021.”
Ebitda margins enlarged to 45.9% from 39.3% within the previous quarter.
Shares of Vi closed at Rs9.95 down by 1.39% on the BSE on Wednesday.
"The revenue growth may be a Brobdingnagian concern despite Vi’s tight 4G user adds
within the March quarter, that makes it all the additional vital for the corporate to fleetly line
up the funding, while not that, its survival possibilities currently seem slim, particularly
because it faces near-term payment obligations upwards of Rs 13,500 crores in the year 2021
itself,” same an analyst at a number one international brokerage.

The operator's Average Revenue Per User (ARPU) was Rs 107, under Rs 121 clocked within
the business enterprise of the third quarter. Rivals Bharti Airtel and Reliance Jio, additionally

compact by an interruption in IUC have denoted an ARPU of Rs 145 and Rs 138.2 severally
in the January-March quarter.
Vodafone plan same 9.6% of the revenue drop
was on account of the conclusion of domestic
IUC effective from April 2021 and a couple
of.2% was on account of the lower variety of
days within the quarter. The IUC dip has
compact rivals Reliance Jio Infocomm
(Jio) and Bharti Airtel likewise.Net debt at the
top of March was Rs 1,79,960 crore, together
with postponed spectrum payment obligations
of Rs. 96,270 crores and AGR liability of Rs
60,960 crores that area unit because of the
govt. and debt from banks and money
establishments of Rs. 23,080 crore.

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