Latest news with #AdjustedGrossRevenue
Mint
2 days ago
- Business
- Mint
Vodafone Idea share price falls for second consecutive day. Here's why
Vodafone Idea share price continues to fall for second consecutive day on Wednesday after the telecom company said it is actively in discussions with the central government to seek relief regarding its long-pending Adjusted Gross Revenue (AGR) dues. Vodafone Idea stock fell over 1.33 per cent in early trades, however, recovered quickly rising nearly a per cent. At 9:55 am, the stock was trading at ₹ 6.68 apiece on National Stock Exchange (NSE). On Tuesday, Vodafone Idea shares saw a significant decline up to 4 per cent to close at ₹ 6.77. Vodafone Idea, currently grappling with financial difficulties, is in discussions with banks to secure debt funding aimed at supporting its long-term growth, according to CEO Akshaya Moondra. He noted that lenders would require transparency regarding the company's outstanding dues to the government before considering any loan approvals. Moondra further stated that the telecom firm is still negotiating with the central government for a practical solution to the Adjusted Gross Revenue (AGR) issue. He stressed that since the matter falls under policy, the government should have complete discretion to offer relief, without being constrained by judicial oversight. Highlighting the financial strain on the company, Moondra cited India's low Average Revenue Per User (ARPU) and unsustainable data tariffs as major challenges. He advocated for a pricing structure where high data consumers pay more, emphasizing that the sector's returns currently fail to meet capital costs. This comes after a significant blow from the Supreme Court, which recently denied the company's plea for relief, intensifying the crisis for the debt-laden operator. Vodafone Idea is burdened with AGR dues of nearly ₹ 30,000 crore and continues to lose market share. According to TRAI data, the company lost 6.47 lakh subscribers in April, reducing its total user base to 20.47 crore. Before the Supreme Court ruling, the company had urgently appealed to the telecom department, warning that without timely support from the government, it may not be able to continue operations beyond FY26. Despite narrowing its net loss to ₹ 7,166.1 crore in Q4 FY25, Vodafone Idea remains reliant on external funding. Its board has recently approved a fundraising plan of up to ₹ 20,000 crore, which is subject to shareholder and regulatory approval. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
3 days ago
- Business
- Economic Times
Vodafone Idea share price target above Rs 12? What brokerages say
Vodafone Idea shares: The brokerage firm observed that VIL's Q4FY25 results fell short of expectations. The company also saw a loss of 1.6 million subscribers during the quarter, which was lower than the 5.1–5.2 million lost in Q2 and Q3, but slightly better than UBS's forecast of a 1.8 million decline. Tired of too many ads? Remove Ads UBS: Buy| Target price: Rs 12.10 Tired of too many ads? Remove Ads Nuvama: Hold| Target price: Rs 7.5 Macquarie: Underperform| Target price: Rs 6.50 Motilal Oswal: Sell| Target price: Rs 6.5 Tired of too many ads? Remove Ads Amid persistent concerns over subscriber erosion and a heavy debt burden, Vodafone Idea (VIL) shares have drawn the attention of several brokerage firms, with some projecting the stock could rise to as high as Rs company posted soft Q4FY25 results wherein the consolidated net loss was reported at Rs 7,166.1 crore for the quarter ended March 31, 2025 (Q4FY25), marking a 6.6% improvement from the Rs 7,674.59 crore loss reported in the same quarter last the company is not able to see any visibility on relief on its long-standing Adjusted Gross Revenue (AGR) dues, amounting to nearly Rs 30,000 this, analysts across brokerage firms have weighed in on their views about the stock. Here's what they say:The brokerage firm noted that VIL's Q4FY25 results were below their expectations. Additionally, the company lost 1.6 million subscribers in Q4 (vs a loss of 5.1-5.2 million in Q2/Q3 and UBS's estimate of 1.8 million subscriber loss in Q4). Overall, the results were slightly lower than the estimates and UBS noted that an eye needs to be kept on the fundraise updates, capex plan, 5G coverage and any potential AGR / spectrum relief to Nuvama, Vodafone Idea reported in-line Q4FY25 results, with revenue declining 0.9% quarter-on-quarter due to muted ARPU growth, partly attributed to fewer working days in the observed that while subscriber losses have moderated to pre-tariff hike levels, they still impede the company's recovery. The delay in debt funding remains a major overhang on VIL's viability. The brokerage cut its FY26E and FY27E EBITDA estimates by 7% and 4% respectively, citing further dilution from the government's equity holding. VIL is valued at 11x FY27E EV/ brokerage firm Macquarie reported that VIL posted a weak set of Q4FY25 results, missing estimates due to continued subscriber erosion and higher interest burden. VI's net subscriber base declined by 1.6 million quarter-on-quarter to approximately 198 million, while ARPU rose marginally by 0.6% to Rs noted that the company's government dues stood at around US$22.5 billion, with US$4.3 billion of spectrum dues converted to equity, leading to a 49% government shareholding. In contrast, bank and financial liabilities were lower at US$0.3 billion, and the cash balance stood at US$1.2 billion. The board has approved a Rs 200 billion (US$2.3 billion) fundraise via equity, debt, or a hybrid brokerage highlighted that the ongoing erosion in subscribers indicates persistent structural challenges, and despite the government being the largest shareholder, any further equity infusion remains uncertain. Macquarie continues to see industry-wide tailwinds from tariff hikes benefiting Bharti Airtel and Reliance Industries, which it maintains as Outperform-rated Oswal also highlighted that Vodafone Idea continues to lose market share to peers due to weaker ARPU conversion, a weaker subscriber mix, and high churn rates. The telco is planning a significant capex cycle of Rs 50,000–Rs 55,000 crore over the next two to three years to bridge the network gap with competitors. However, the brokerage noted that regaining lost subscribers will remain challenging, given rivals' stronger cash flows and deeper financial Oswal added that Vodafone Idea's network investments are heavily reliant on fresh debt funding, which itself hinges on continued AGR relief and government support, with an estimated Rs 20,000 crore annual cash shortfall projected through FY26–31. Stabilizing the subscriber base and securing further government relief are seen as crucial to the company's long-term survival.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
India Today
19-05-2025
- Politics
- India Today
19 May 2025: Temple-Mosque Survey, Spy Ring Busted & Airtel, Vodafone Blow
India Today Podcasts Desk UPDATED: May 19, 2025 19:12 IST On today's News at 7, Prateek Lidhoo brings you the top stories of Monday, May 19. The Allahabad High Court has upheld the order to survey the Shahi Jama Masjid in Sambhal, dismissing the mosque committee's plea amid an ongoing dispute over claims of a demolished temple. A major Pakistani spy network has been busted, with arrests across Haryana, Punjab, and Uttar Pradesh revealing deep links to the ISI. The Supreme Court has rejected Madhya Pradesh Minister Vijay Shah's apology for his communal remarks against Army officer Col. Sofiya Qureshi, calling his statement insincere and setting up a special probe team. And finally, telecom giants Vodafone Idea and Airtel suffered a major blow as the Supreme Court refused to waive interest dues on their Adjusted Gross Revenue liabilities. Stay informed with News at 7 — your daily news wrap from India Today Podcasts. Produced by Prateek Lidhoo Sound mix by Suraj Singh
Business Standard
19-05-2025
- Business
- Business Standard
Vodafone Idea tanks after SC snub on AGR dues
Vodafone Idea shares nosedived 8.6% to Rs 6.73 after the Supreme Court reportedly dismissed the company's writ petition seeking urgent relief on its long-standing Adjusted Gross Revenue (AGR) dues. The courtroom blow had a ripple effect. Indus Towers shares slid up to 2.8%, underscoring wider worries about the sector's financial strain. In light of the development, stock exchanges have sought clarification from Vodafone Idea, but a response is still pending. According to the media reports, the Supreme Court called the plea "shocking" and "misconceived," asserting that the relief sought was not legally tenable. Vodafone Idea had sought an urgent hearing last Friday, pleading for relief on dues amounting to nearly Rs 30,000 crore, largely comprising penalties and interest on penalties under the AGR framework. The telco warned that without further government support, the sector could face an existential crisis. Curiously, the Indian government holds a 49% stake in Vodafone Idea after converting earlier dues into equity. Despite the turmoil, Vodafone Idea still has a sizable retail backing. As of the March quarter, 59.28 lakh small investors, those holding up to Rs 2 lakh in shares, remain part of its investor base. Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. It is amongst Indias leading telecom service providers. The company provides pan India Voice and Data services across 2G and 4G technology. The company holds a large spectrum portfolio including mid band 5G spectrum in 17 circles and mmWave spectrum in 16 circles and is in the process of launching 5G in 17 circles. The company reported a consolidated net loss of Rs 6,609.3 crore in Q3 FY25 as against a net loss of Rs 6,985.9 crore in Q3 FY24. Revenue from operations rose by 4.16% year-on-year to Rs 11,117.3 crore in Q3 FY25.
India Gazette
19-05-2025
- Business
- India Gazette
Supreme Court dismisses Vodafone Idea and Airtel petition for waiving interest on AGR dues
New Delhi [India] May 19 (ANI) Supreme Court on Monday dismisses write petition by Vodafone Idea and Airtel for exemption of interest on Adjusted Gross Revenue (AGR) dues. A bench of Justices JB Pardiwala and R Mahadevan dismissed the pleas calling the petitions 'misconceived'. Vodafone Idea had approached the Supreme Court earlier this month, seeking relief of over Rs 45,000 crore in relation to its AGR dues. The apex court has earlier as well refused to given any relief to the telecom company. The company also noted that the government had converted a portion of its dues, about Rs 39,000 crore into equity, it still owed nearly Rs 1.19 lakh crore in spectrum and AGR-related dues. Bharti Airtel and Bharti Hexacom, too moved the supreme court for waiver of interest and penalties on AGR dues amounting to Rs 34,745 crore on equity basis. Earlier the Department of Telecom has also refused to given any further relief on AGR dues, citing apex court's 2020 judgement and government support to Vodafone Idea through equity conversion. The dispute over the definition and calculation of AGR ends with the ruling of the Supreme court in 2019. In 2020, the apex court has set a time line of 10-year for telcos to clear AGR dues to the government in tranches. On requests from telcos, the DoT had earlier urged the court to extend the repayment window to 20-years which was refused by the top court. Telecom companies also challenged the method of calculation of AGR, citing arithmetic errors but the apex court dismissed those claims as well. The curative petition of Vodafone idea on the issue was also rejected by the top court in September 2024. In its latest move Vodafone Idea again moved with a petition before the apex court in April to waive off the interest on AGR dues, which was rejected on Monday by the court, calling the petition 'shocking' and deems it 'misconceived'. At the time of filing this report Vodafone Idea share were down over 9 per cent, trading at Rs 6.70. (ANI)
