Vodafone Idea share price rises 15% after Q3 loss narrows to Rs 6,438 crore
BusinessToday.In February 14, 2020
Vodafone Idea share price rose in early trade today after the telco narrowed its Q3 loss to Rs 6,438.8 crore compared to Rs 50,922 crore loss posted for the quarter ended September 2019. The firm said it accounted for most of the liabilities of Rs 44,150 crore related to license fee and spectrum usage charges in Q2 of current fiscal. Share price of Vodafone Idea surged up to 14.95% to Rs 5.15 compared to the previous close of Rs 4.48 on BSE.
Vodafone Idea stock has lost 73.74% in last one year and fallen 19.16% since the beginning of this year. 140.77 lakh shares of Vodafone Idea changed hands amounting to turnover of Rs 6.97 crore on BSE. Market cap of the firm rose to Rs 14,310 crore.
Compared with consolidated net loss of Rs 6,438.8 crore in Q3, its sixth consecutive quartely loss, the firm logged net loss of Rs 5,004.6 crore in the corresponding quarter of last year. Vodafone Idea's gross revenue fell to Rs 11,089.4 crore for the quarter under review compared to Rs 11,764.8 crore revenue in the year-ago period.
Meanwhile, operational expenses fell to Rs 7,668.9 crore from Rs 10,601.6 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to Rs 3,420.5 crore during Q3 FY20 compared with Rs 1,163.1 crore in Q3 FY19. The firm also clocked a 30.8 per cent rise in EBITDA margin during the quarter under review from 9.9 per cent in the same quarter last fiscal.
The company saw its average revenue per user (ARPU) increase to Rs 109 from Rs 89, "supported by improved consumer mix". For the quarter ended December 31, 2019, Vodafone Idea claimed to command a subscriber base of 304 million, down from 387.2 million for the same period last year.
By Aseem Thapliyal