Vodafone Idea gains as net loss shrinks in Q2 FY21

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Gross revenue during the quarter declined 0.5% year-on-year (YoY) to Rs 10,791.2 crore.

EBITDA in the second quarter rose 22.3% to Rs 4,152.4 crore from Rs 3395.6 crore reported in the same period last year. EBITDA margin was at 38.5% as on 30 September 2020 as against 31.3% as on 30 September 2019.

The teleco recorded an exceptional expense of Rs 767.1 crore during the first quarter. Of the total sum, Rs 338.4 crore pertains to integration and merger related costs. Rs 297.7 crore is provisioning for additional depreciation or impairment of assets and Rs 128.7 crore is for one-time spectrum charge (including interest).

Vodafone Idea reported a pre-tax loss of Rs 7,218.5 crore in Q2 FY21 as against a pre-tax loss of Rs 36,959.2 crore in Q2 FY20. The company wrote back taxes worth Rs 0.3 crore during the quarter.

Average revenue per user (ARPU) blended rose 11.2% to Rs 119 in Q2 September 2020 from Rs 107 in Q2 September 2019. Sequentially, ARPU has improved by 4.4% to Rs 114.

The company's total data subscribers declined by 2% to 13.75 crore in Q2 FY21 from 14.03 crore in Q2 FY20. The subscriber base, however, has increased by 1.3% from 13.57 crore in Q1 FY21.

Capex spend in Q2FY21 was Rs 1040 crore, up by 73.3% from Rs 600 crore in Q1FY21.

Gross debt (excluding lease liabilities) as of 30 September 2020 was Rs 1,15,940 crore, including deferred spectrum payment obligations due to the Government of Rs 92,310 crore.

Cash & cash equivalents were Rs 1430 crore and net debt stood at Rs. 1,145.1 billion (as against Rs 1,15,500 crore in Q1FY21).

Ravinder Takkar, MD & CEO, Vodafone Idea, said “As we reach the end of our integration journey, we have become the fastest and most consistent 4G network of India, as validated by Ookla, a testimony to our superior and improved 4G GIGAnet network covering 1 billion Indians. We have launched our new unified brand “Vi”, built on the legacy of two of the most loved brands of the country, and are all set to regain customer mind share.

While we continue to face COVID-19 induced challenges, Q2FY21 showed signs of recovery with a gradual improvement in economic activities. We are executing on our strategy and our cost optimization exercise has already started to yield incremental savings. We have also initiated a fund raising exercise to support our strategic intent. Further, we continue to interact with the government seeking long term solutions to the critical challenges, which the industry faces.”

Vodafone Idea operates as a telecom service provider. The company offers 2G, 3G, and 4G mobile services, as well as mobile payments, advanced enterprise offerings, and entertainment.

Source: Capitalmarket.com