Vodafone Idea Q3 results: Net loss widens to Rs 7,990 cr; ARPU improves marginally

Telecom firm Vodafone Idea's net loss widened to Rs 7,990 crore in the quarter ended December 31, 2022 as against Rs 7,595.5 crore in the year-ago period. The company's revenue rose 9% to Rs 10,621 crore in Q3FY23 as compared to Rs 9,717 crore in Q3FY22.

ARPU (average revenue per user) for the quarter stood at Rs 135 vs Rs 131 in Q2FY23 and Rs 115 in Q3FY22, a YoY growth of 17.4%.

Akshaya Moondra, CEO, Vodafone Idea Limited, said: “We are pleased to report sixth consecutive quarter of revenue growth and 4G subscriber addition on the back of superior data and voice experience offered by Vi GIGAnet. We have issued equity shares to the Government of India recently, consequent to conversion of the interest related to deferment of spectrum and AGR dues into equity. Separately, our board has approved issuance of Optionally Convertible Debentures amounting to Rs 1,600 crore to ATC India. With these positive developments, we continue to remain engaged with our lenders for further debt fund raising as well as with other parties for equity or equity linked fund raising, to make required investments for network expansion and 5G rollout.”

The company's board approved Murthy GVAS as interim CFO with effect from February 15. On Tuesday, the company's scrip on BSE closed trading 1.2% lower at Rs 7.75.

Earlier this month, debt-ridden Vodafone Idea approved the allotment of equity shares worth Rs 16,133 crore to the government, which post-allocation has become the largest shareholder with a 33.44 per cent stake in the company.

The shares have been allocated to the government in lieu of conversion of interest dues arising from deferment of adjusted gross revenue and spectrum auction payments, the company said in a regulatory filing.

''...it is hereby informed that the board of directors of the company has, at its meeting held today approved the allotment of 16,133,198,899 equity shares of face value of Rs 10 each at an issue price of Rs 10 per equity share aggregating to Rs 161,331,848,990 to the Department of Investment and Public Asset Management, Government of India,'' the company said.

The government cleared conversion of Rs 16,133 crore interest dues of debt-ridden Vodafone Idea into equity after receiving a firm commitment from Aditya Birla Group to run the company and bring necessary investment.