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Vodafone Idea Q2 result: Telco reports net loss of Rs 7,132.3 cr; net debt at Rs 1.9 lakh cr

Vodafone Idea Q2 result: Telco reports net loss of Rs 7,132.3 cr; net debt at Rs 1.9 lakh cr

Vodafone Idea's revenue for the July-September quarter was Rs 9,410 crore, an improvement of 2.8 per cent QoQ. EBITDA for the quarter improved to Rs 3,860 crore, up 4.2 per cent QoQ.

Vodafone Idea's cash and cash equivalents as of Q2 FY22 stood at Rs 250 crore. Vodafone Idea's cash and cash equivalents as of Q2 FY22 stood at Rs 250 crore.

Telecom company Vodafone Idea, which has been rebranded as Vi, has reported a net loss of Rs 7,132.3 crore for the July-September quarter, compared to Rs 7,319.1 crore loss in the previous quarter.

The telco's revenue for the quarter was Rs 9,410 crore, an improvement of 2.8 per cent QoQ, aided by pick up in the economic activities and easing of lockdown curbs induced by a severe second wave of COVID-19.

EBITDA for the quarter improved to Rs 3,860 crore, up 4.2 per cent QoQ. It was aided by improvement in revenue partially offset by an increase in customer acquisition costs due to higher gross additions during Q2 and other inflationary cost increases.

EBITDA margins for Q2 FY22 stood at 41.1 per cent vs 40.5 per cent in Q1 FY22.

Vodafone Idea's total gross debt as of September 30, 2021, stands at Rs 1,94,780 crore. It comprises deferred spectrum payment obligations of Rs 1,08,610 crore, AGR liability of Rs 63,400 crore that is due to the government and debt from banks and financial institutions of Rs 22,770 crore.

Vodafone Idea's cash and cash equivalents as of Q2 FY22 stood at Rs 250 crore and net debt stood at Rs 1,94,530 crore.

Ravinder Takkar, MD & CEO, Vodafone Idea, said the company welcomes the government's landmark reform package, which "addresses several industry concerns" and "provides immediate relief" to the financial stress in the sector.

"During the last quarter, we witnessed a recovery in our operating momentum as the economy has started to gradually open up aided by the ongoing rapid vaccination drive. We continue to improve our 4G subscriber base on the back of superior data and voice experience on Vi GIGAnet, India's fastest mobile network, which is testified through consistent top rankings in Ookla and TRAI," he added.

During Q2, telco added 10,800 4G FDD sites, primarily through refarming of 2G/3G spectrum (shutdown ~9,600 3G sites) to expand 4G coverage and capacity. Overall, broadband site count stood at 450,481, compared to 447,114 in Q1 FY22.

At the end of Q2 FY22, Vodafone Idea's subscriber base stands at 253 million vs 255.4 million in Q1 FY22, a decline of 2.4 million. However, the 4G subscriber base saw healthy addition of 3.3 million, with overall 4G base now at 116.2 million. ARPU (average revenue per user) improved to Rs 109, up 5.3 per cent QoQ vs Rs 104 in Q1FY22.

Vi stock closed at Rs 10.25 today, up 0.40 or 4.06 per cent, compared to the previous day close of Rs 9.85 on the NSE.

Also read: Vodafone Idea board approves deferment of AGR dues payment for four years

Also read: Vodafone Idea in talks with SBI for loan lifeline