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Vodafone Idea share tanks 15% post weak Q4 earnings

Vodafone Idea share tanks 15% post weak Q4 earnings

The stock opened 10 per cent lower at Rs 8.96 against the previous close of Rs 9.95 on BSE. Market cap of the firm fell to Rs 26,321.62 crore.

Vodafone Idea tanks 15% post weak Q4 earnings Vodafone Idea tanks 15% post weak Q4 earnings

Share of Vodafone Idea tumbled 15 per cent to hit an intraday low of Rs 8.46 on BSE after the company reported a consolidated loss of Rs 7,022.8 crore for the quarter ended March 2021.

The company had reported a loss of Rs 11,643 in the year-ago period. However, it posted a loss of Rs 4,532 crore in Q3FY21.

Revenue from operations declined 18.2 per cent to Rs 9,607 crore from Rs 11,754 crore in the corresponding quarter of 2019-20.

The stock opened 10 per cent lower at Rs 8.96 against the previous close of Rs 9.95 on BSE. Market cap of the firm fell to Rs 26,321.62 crore.

"Our overall broadband site count stood at 452,650 as of March 31, 2021, compared to 436,006 a year ago. We have shut down over 30,000 3G sites during the year while we added over 47,000 4G sites," the company said.

The gross debt as of March 31, 2021, stood at Rs 1,80,310 crore. This comprised deferred spectrum payment obligations of Rs 96,270 crore, AGR (adjusted gross revenue) liability of Rs 60,960 crore, and debt from banks and financial institutions of Rs 23,080 crore.

"At the end of the quarter, the 4G subscriber base was 113.9 million (vs 109.7 million in Q3), an increase of 4.2 million in the quarter. The data volumes witnessed a healthy growth of 8.2% QoQ, driven by higher 4G additions," the company added.

"FY21 has been a transformational year for Vodafone Idea with several important milestones achieved including the launch of our unified brand "Vi". In the year of the pandemic, when people and businesses were hugely dependent on telecom connectivity, we delivered superior network experience and improvement in several operating metrics supported by Vi GIGAnet, which remains the fastest 4G network in India, as per Ookla, as well as the network with highest rated voice quality as per TRAI," Ravinder Takkar, MD & CEO, Vodafone Idea Limited.

"We enter FY22 with a renewed focus on executing our strategy to keep our customers ahead, and our cost optimization plan remains on track to deliver the targeted savings. We are in active discussion with potential investors for fundraising, to achieve our strategic intent," it added.

Vodafone Idea is part of the future and option (F&O) segment and such stocks don't have circuit limits.