scorecardresearch
Vodafone Idea posts net loss of Rs 7,022.8 cr in Q4 FY21

Vodafone Idea posts net loss of Rs 7,022.8 cr in Q4 FY21

The company’s financial performance has impacted its ability to generate the cash flow that it needs to settle/refinance its liabilities and guarantees as they fall due, says Vi

Vodafone Idea Ltd's net loss for the fourth quarter of fiscal year FY21 stood at Rs 7,022.8 crore as against Rs 4,532.1 crore in the previous quarter. Its net loss for Q4 FY20 was at Rs 11,643 crore. Revenue from operations for the quarter stood at Rs 9,607.6 crore, a decline of 11.8 per cent QoQ and down 18.26 per cent on a YoY basis. Vodafone Idea's (Vi) revenue in Q3 FY21 was at Rs 10,894.1 crore. The company also posted an exceptional loss of Rs 974.3 crore during the fourth quarter of the fiscal year.

ARPU (average revenue per user) for Q4 FY21 declined to Rs 107 vs Rs 121 in Q3FY21, on account of removal of IUC (Interconnect Usage Charges), adjusting for which ARPU was broadly flat this quarter, Vi said in a statement.

"The company's financial performance has impacted its ability to generate the cash flow that it needs to settle/refinance its liabilities and guarantees as they fall due, which along with its financial condition is resulting in material uncertainty that casts significant doubt on the company's ability to make the payments mentioned therein and continue as a going concern," the company said in the exchange filing.

Also read: Revenue from 5G services to be insignificant for late adopters, says Moody's

Vi said there "exists material uncertainty relating to the Group's ability to continue as a going concern which is dependent on its ability to raise additional funds as required, successful negotiations with lenders on continued support, refinancing of debts, monetisation of certain assets, the outcome of the modification application filed with the Supreme Court and clarity of the next instalment amount, acceptance of its deferment request by DoT and generation of cash flow from operations that it needs to settle/renew its liabilities/guarantees as they fall due".

Besides, Vi said the 4G subscriber momentum continues to improve, and net 4G addition of 4.2 million took its 4G subscriber base to 113.9 million. The company is also in active discussions with potential investors for fundraising.

"We enter FY22 with a renewed focus on executing our strategy to keep our customers ahead, and our cost optimisation plan remains on track to deliver the targeted savings. We are in active discussion with potential investors for fundraising, to achieve our strategic intent," the company's MD and CEO Ravinder Takkar said.

Vi had participated in spectrum auction in March and acquired 23.6 MHz of spectrum across 900 and 1800 MHz in Tamil Nadu, Karnataka, UP East, UP West, and West Bengal for Rs 1,993 crore. Shares of Vodafone Idea closed 0.50 per cent lower at Rs 10.05 on the National Stock Exchange on Wednesday.

Also read: Reliance Jio trumps Airtel in March; adds over 7.9 million mobile subscribers: TRAI