Vodafone Idea shares jump 8% ahead of Q4 results on June 30
BusinessToday.In June 29, 2020
Shares of Vodafone Idea continued gaining streak for the third consecutive session on Monday, rising over 8 per cent in intraday trade on the Bombay Stock Exchange (BSE), ahead of its fourth quarter earnings report which is scheduled to be released on June 30. The stock has rallied 18.4 per cent as compared to Thursday's intraday low of Rs 9.5 per share.
Extending previous session rally, Vodafone Idea share price gained as much as 8.27 per cent to touch an intraday high of Rs 11.25 apiece, against previous closing price of Rs 10.39, on the BSE. The stock hit 52-week high of Rs 13.15 on July 4, 2019.
In a similar trend, Vodafone Idea shares were trading 6.73 per cent higher at Rs 11.10 on the National Stock Exchange. The stock hit a day's high of Rs 11.25 after opening higher at Rs 10.60.
In October-December quarter (Q4 FY20), the debt-laden telecom operator reported a consolidated net loss of Rs 6,438.8 crore, its sixth consecutive quarterly loss. Its gross revenue slipped to Rs 11,089.4 crore as compared to Rs 11,764.8 crore in the year-ago period.
Vodafone Idea, similar to the rest of the telecom industry, had a rough December quarter this fiscal due to the fallout of a Supreme Court verdict on adjusted gross revenue (AGR). As per the Department of Telecom's (DoT) estimate, the total AGR dues of Vodafone Idea is Rs 53,000 crore, while as per the company's self-assessment the outstanding dues are estimated to be around Rs 23,000 crore. So far, the company has paid Rs 6,900 crore. As per DoT, it still has to pay Rs 46,100 crore.
Earlier this month, the Supreme Court asked Vodafone Idea, Bharti Airtel and other operators to file a reply on the roadmap of AGR payment and also asked them to submit their financial statements and balance sheets while listing the matter for further hearing in July third week.
As per the DoT's submission to the SC, the total due amount is Rs 119,292 crore, of which the telecom players have so far paid Rs 25,896 crore. Thus, the balance amount due is Rs 83,520 crore.
By Chitranjan Kumar