Vodafone Strategy narrowed its net loss to Rs four,532 crore in the 3rd quarter of FY2021 on the back again of gains from the sale of its stake in Indus Towers. In the identical quarter previous calendar year, the organization had posted a net loss of Rs six,438 crore.
Gross revenue declined one.seven per cent on a calendar year on calendar year foundation to Rs ten,894 crore in the claimed quarter as the organization carries on to reduce subscribers.
All through the 3rd quarter, Vodafone Strategy undertook limited tariff hike in a several of its spouse and children pack programs in pick circles like Uttar Pradesh but that did not translate into revenue advancement. Sequentially, the company’s revenue grew by .9 per cent.
Earnings in advance of curiosity tax depreciation and amortization (EBIDTA), even so, improved twenty five.three per cent on a calendar year on calendar year foundation to Rs 4286 crore thanks to cost optimisation.
The final result was boosted by an excellent revenue of Rs 2118 crore from the sale of the company’s 11.five per cent stake in the cell towers organization Indus Towers.
Operationally it was a weak quarter for Vodafone Strategy when compared to its peers. The company’s subscriber foundation dwindled by two million sequentially when rival Airtel attained 14.two million subscribers in the quarter ended December. Vodafone Idea’s net subscribers stood at 269.eight million at the close of the quarter.
On the other hand, 4G subscribers noticed an addition of three.six million to 109.seven million. Details volumes as well grew three.four per cent quarter on quarter driven by bigger 4G additions.
The typical revenue per user grew sequentially by one.six per cent to Rs 121 but advancement was slower when compared to Airtel and Reliance Jio which clocked two.four per cent and four per cent advancement respectively.
In a statement, the company’s managing director and CEO Ravinder Takkar explained, “In Q3FY21, we enhanced subscriber retention and functioning general performance, supported by Vi GIGAnet, which remains the swiftest 4G network in India, as per Ookla as very well the network with optimum rated voice high-quality as per TRAI – a testimony to our remarkable network.
We continue to be concentrated on executing our technique, and our cost optimisation program remains on keep track of to provide the targeted cost savings. The board has authorised money increasing to guidance our strategic intent and we are in active discussions with likely traders.”
The organization has targeted cost cost savings of Rs 4000 crore by December 2021 and has attained 50 per cent of targeted operational costs effectiveness on the operate amount foundation, the statement explained.
In September, Vodafone Idea’s board had authorised fundraising of up to Rs twenty five,000 crore consisting of a mix of debt and fairness. The organization is in dialogue with a consortium led by Oaktree Money Management which has available $ two billion to the organization.
Fundraising will aid the organization to meet up with its debt and adjusted gross revenue obligations. At the close of December quarter, the company’s gross debt excluding lease liabilities stood at Rs one.seventeen trillion which included deferred spectrum payment obligations of Rs 94,200 crore and lender loans of Rs 23170 crore.
Vodafone Strategy has adjusted gross revenue legal responsibility of Rs fifty eight,254 crore and has so far paid Rs 7850 crore towards AGR dues. Very last thirty day period, telecom companies including Vodafone Strategy and Bharti Airtel approached the Supreme Court docket looking for a correction in the computation of AGR demands designed by the governing administration. The courtroom is nonetheless to hear the make a difference.
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