Vodafone Idea secures Rs 2,000 cr to meet payment obligations, Q1 loss widens
Separately, Vodafone Idea said it has proposed to pay a spectrum auction instalment of Rs 1,680 crore along with interest by availing a grace period of 30 days
- Aug 14, 2023,
- Updated Aug 14, 2023 10:00 PM IST
Telecom firm Vodafone Idea Ltd said on Monday a shareholder had committed to provide up to Rs 2,000 crore to the company to meet its payment obligations.
The company's total gross debt as of June 30 stood at Rs 2.12 lakh crore, comprising deferred spectrum payment obligations of Rs 1.34 lakh crore and adjusted gross revenue dues of Rs 66,860 crore owed to the government.
Debt from banks and financial institutions stood at Rs 9,500 crore and optionally convertible debentures amounted to Rs 1,660 crore.
Separately, Vodafone Idea said it has proposed to Department of Telecommunications of paying a spectrum auction instalment of Rs 1,680 crore along with interest by availing a grace period of 30 days. The instalment is due on August 17.
The company, earlier in the day, reported a wider first-quarter loss because of weak 4G subscriber growth and higher expenses.
The company's consolidated loss after tax stood at Rs 7,840 crore for the quarter ended June 30, compared to a loss of Rs 7,297 crore a year ago.
The company's average revenue per user (ARPU), a key metric for telecom firms, rose to Rs 139 from Rs 135 last quarter and Rs 128 in the year-ago quarter, helped by "subscriber migration to higher ARPU plans", it said.
Vodafone Idea's 4G subscriber base, too, barely inched up 0.2% to 122.9 million sequentially; its overall subscriber base shrunk to 221.4 million from 225.9 million sequentially.
Its expenses rose 4% year-on-year to Rs 18,513 crore, outpacing a 2.4% rise in revenue to Rs 10,656 crore.
Burdened with massive government debt and spectrum dues, Vodafone Idea has been unable to ink a fundraising deal. In April, billionaire Kumar Mangalam Birla returned to the company's board, raising hopes that the Birla Group might infuse money.
"We remain engaged with our lenders for further debt fundraising as well as with other parties for equity or equity-linked fundraising to make required investments for network expansion, including 5G rollout," CEO Akshaya Moondra said in a statement.
Shares of Vodafone Idea settled 0.6% lower ahead of the results.
With inputs from Reuters
Telecom firm Vodafone Idea Ltd said on Monday a shareholder had committed to provide up to Rs 2,000 crore to the company to meet its payment obligations.
The company's total gross debt as of June 30 stood at Rs 2.12 lakh crore, comprising deferred spectrum payment obligations of Rs 1.34 lakh crore and adjusted gross revenue dues of Rs 66,860 crore owed to the government.
Debt from banks and financial institutions stood at Rs 9,500 crore and optionally convertible debentures amounted to Rs 1,660 crore.
Separately, Vodafone Idea said it has proposed to Department of Telecommunications of paying a spectrum auction instalment of Rs 1,680 crore along with interest by availing a grace period of 30 days. The instalment is due on August 17.
The company, earlier in the day, reported a wider first-quarter loss because of weak 4G subscriber growth and higher expenses.
The company's consolidated loss after tax stood at Rs 7,840 crore for the quarter ended June 30, compared to a loss of Rs 7,297 crore a year ago.
The company's average revenue per user (ARPU), a key metric for telecom firms, rose to Rs 139 from Rs 135 last quarter and Rs 128 in the year-ago quarter, helped by "subscriber migration to higher ARPU plans", it said.
Vodafone Idea's 4G subscriber base, too, barely inched up 0.2% to 122.9 million sequentially; its overall subscriber base shrunk to 221.4 million from 225.9 million sequentially.
Its expenses rose 4% year-on-year to Rs 18,513 crore, outpacing a 2.4% rise in revenue to Rs 10,656 crore.
Burdened with massive government debt and spectrum dues, Vodafone Idea has been unable to ink a fundraising deal. In April, billionaire Kumar Mangalam Birla returned to the company's board, raising hopes that the Birla Group might infuse money.
"We remain engaged with our lenders for further debt fundraising as well as with other parties for equity or equity-linked fundraising to make required investments for network expansion, including 5G rollout," CEO Akshaya Moondra said in a statement.
Shares of Vodafone Idea settled 0.6% lower ahead of the results.
With inputs from Reuters