Latest Vodafone Idea Sees Subscriber Base Drop to 29.1 Crores, Posts Biggest Ever Loss by an Indian Firm

Vodafone Idea Sees Subscriber Base Drop to 29.1 Crores, Posts Biggest Ever Loss by an Indian Firm

Vodafone Concept, the nation’s third largest telecom operator, on Wednesday reported a staggering Rs. 73,878 crores of internet loss in fiscal ended March 2020 – the best ever by any Indian agency – after it provisioned for Supreme Court docket mandated statutory dues.

The agency, which has to pay Rs. 51,400 crores dues after the Supreme Court docket ordered the non-telecom revenues to be included in calculating statutory dues, stated the legal responsibility has “solid important doubt on the corporate’s means to proceed as a going concern.”

In a regulatory submitting, Vodafone Concept (VIL) reported widening of March quarter internet loss to Rs. 11,643.5 crores. Its losses stood at Rs. 4,881.9 crores in the identical interval a yr in the past and Rs. 6,438.eight crores in earlier October-December quarter.

The Division of Telecom (DoT) estimates the agency’s adjusted gross income (AGR) dues at Rs. 58,254 crores for interval as much as FY 2016-17, however the firm put the dues at Rs. 46,000 crores “after adjustment of sure computational errors and funds made up to now not thought-about within the DoT demand.”

Of the entire dues, it has made a cost of Rs. 6,854.Four crores.

The corporate took successful of Rs. 1,783.6 crores on account of AGR-related liabilities, and Rs. 3,887 crores on account of one-time spectrum fees (OTSC), each of which had been recognised as distinctive gadgets through the quarter ended March 2019. Income from operations for the just-ended quarter got here in at Rs. 11,754.2 crores.

For the total yr FY20, losses ballooned to Rs. 73,878.1 crores. Vodafone Concept’s losses stood at Rs. 14,603.9 crores in FY19.

The corporate stated that the monetary outcomes for the yr ended March 31, 2020, will not be similar to these reported for a similar interval of the previous yr (merger between Vodafone India and Concept Mobile had taken impact in August 2018).

The income from operations for full yr FY20 stood at Rs. 44,957.5 crores. The identical was Rs. 37,092.5 crores in FY19.

In a press release, the corporate stated that the income had witnessed robust progress of six p.c quarter-on-quarter, pushed by pay as you go tariff hike efficient December 2019.

Ravinder Takkar, MD and CEO, Vodafone Concept stated “Our give attention to speedy community integration, in addition to 4G protection and capability growth, has additional improved buyer expertise… We thus proceed to guide the league tables on 4G information obtain speeds throughout a number of states, metros and enormous cities. We now have achieved our full opex merger synergy goal.”

He added that the subsequent Supreme Court docket listening to on AGR matter is scheduled to be held within the third week of July.

“In the meantime, we proceed to actively have interaction with the federal government in search of a complete aid package deal for the trade, which faces crucial challenges,” he stated.

Gross debt (excluding lease liabilities) as on March 31, 2020, was Rs. 1,15,000 crores together with deferred spectrum cost obligations as a result of authorities of Rs. 87,650 crores.

“The community integration is in closing levels of completion however has been impacted by the nationwide lockdown as a result of COVID-19. As of date, we have now accomplished community integration in 92 p.c of whole districts,” the corporate added.

As a result of continuation of nationwide lockdown, the remaining consolidation is anticipated to take longer than initially anticipated, it stated.

Its subscriber base eroded to 291 million in March quarter from 304 million in December quarter. Common income per consumer (ARPU) for This autumn improved to Rs. 121 versus Rs. 109 in Q3FY20, pushed by the pay as you go tariff hike efficient from December 2019.

Vodafone Concept maintained it plans to monetise its 11.15 p.c stake in Indus Towers on completion of the Indus-Infratel merger.

VIL stated that’s no materials impression of the pandemic on its general efficiency, however it continues to observe the scenario intently.

On AGR dues, the corporate stated that it has recognised a complete estimated legal responsibility of Rs. 46,000 crores.

“The whole estimated legal responsibility of Rs. 460,000 million stands diminished as at 31 March, 2020 to the extent of cost (Rs. 68,544 million) made…,” the corporate stated in a BSE submitting. With regard to OTSC levy, it stated that Rs. 3,890 crores has been recognised as distinctive merchandise through the quarter.

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