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Time of India
2 days ago
- Business
- Time of India
Vodafone Idea posts ₹7,166 crore loss in Q4FY25, plans ₹20,000 crore fundraise
Mumbai: The board of directors of Vodafone Idea on Friday approved raising up to ₹20,000 crore more even as its net loss for the March quarter widened sequentially to ₹7,166 crore from ₹6,609 crore and it continued to lose subscribers. Raising fresh funds will be critical to the telco's 4G and 5G expansion as it tries to stop user losses and turn around its business. The company said it would evaluate raising money by way of equity or debt or any other convertible instruments in one or more tranches. The JV of UK's Vodafone Group Plc and India's Aditya Birla Group was unable to arrest subscriber churn even as it commenced pan-India 5G rollouts this quarter covering major markets like Mumbai and Delhi. In December, subscriber base had fallen below the 200 million mark for the first time since its merger in 2019. In March, it further declined to 198.2 million. SR Batliboy and Associates, the auditors of Vi, cautioned that the operator's financial performance has impacted its ability to generate cash flows that it needs to settle/refinance its liabilities as they fall due. 'The group's ability to continue as a going concern is dependent on support from the DoT on the AGR (adjusted gross revenue) matter, successfully arranging funding and generation of cash flow from its operations that it needs to settle its liabilities as they fall due,' the auditor said. But the top management was upbeat about the results, pointing out that the pace of subscriber losses had slowed and the average revenue per user (ARPU) improved. 'Early indicators show improvement across key business metrics and with our ongoing investments, we are well placed to effectively participate in the growth opportunity offered by the Industry,' Akshaya Moondra, chief executive of Vodafone Idea , said in an earnings statement late on Friday. Vi commenced 5G services in Delhi-NCR, Mumbai, Chandigarh, and Patna this quarter, and plans to extend coverage to all 17 circles where it holds 5G airwaves by August 2025. However, the widespread 5G rollouts by larger rivals Reliance Jio and Bharti Airtel have made it challenging for Vi to catch up in terms of market penetration, user adoption, and overall perception. The telco's ARPU — a key performance metric — grew marginally to ₹164 in the March quarter, from ₹163 in the preceding quarter, as the residual flow-through of headline rate hikes in July 2024 was mostly absorbed by now. Quarterly revenue grew 0.9% quarter-on-quarter to ₹11,014 crore. 'This has been a turnaround quarter for us, marked by the highest average daily revenue in the past five years and a significant reduction in subscriber loss,' Moondra said. The telco lost 1.6 million subscribers in the January-March period compared with 5.2 million in the previous three-month period. Its net debt reduced substantially to ₹1.97 lakh crore as on March 31, from ₹2.29 lakh crore in the previous quarter, as the Government of India converted AGR-related dues to equity share in the company. Of this, Vi's bank debt stood at ₹2,345 crore and payment towards spectrum obligations plus AGR totalled ₹1.95 lakh crore at March-end. The firm's stock fell 3.22% before closing at ₹6.92 per share on BSE Friday. Results were declared after market closing. Prior to the merger on August 31, 2018, Vodafone India had 204.68 million subscribers and Idea Cellular had 190.51 million subscribers. However, with the telco incurring losses since the merger and weak cash position due to piling debt meant it wasn't able to invest adequately in expanding 4G network and start 5G rollouts, leading to rapid user losses, analysts said. Vi ended the March quarter with 198.2 million users, falling from 199.2 million in the December quarter. Its 4G subscribers base grew a tad to 126.4 million as of March-end from 126 million as of December-end. Having already raised equity funding of about ₹24,000 crore, the cash-strapped telco is also in talks with a consortium of banks to raise up to ₹25,000 crore and additional non-fund-based facilities of up to ₹10,000 crore, the company had said previously. 'We remain engaged with lenders to secure debt financing to support our broader capex plans of ₹50,000–55,000 crore,' Moondra added.
Business Times
2 days ago
- Business
- Business Times
EMA grants conditional licence to RGE, TotalEnergies' Indonesian solar project to import electricity to Singapore
[SINGAPORE] The Energy Market Authority (EMA) on Friday (May 30) granted a conditional licence to Singa Renewables, a joint venture (JV) between RGE and TotalEnergies, to import 1 gigawatt (GW) of low-carbon electricity from Indonesia to Singapore. This is the sixth electricity import project to be awarded a conditional licence, after EMA in September 2024 raised the low-carbon electricity import target to around 6 GW by 2035, up from the initial target of 4 GW announced in 2021. This is a part of Singapore's strategy to decarbonise the power sector, which currently accounts for about 40 per cent of the country's carbon emissions. Faith Gan, director of energy connections office at EMA, told The Business Times that the government would be open to more electricity imports beyond 6 GW as Singapore's energy demand grows beyond 2035. Presenting the conditional licence to the JV, EMA chief executive Puah Kok Keong said: 'This licence marks another step forward in our efforts to transform the power sector and deepen regional energy cooperation.' While electricity import projects help diversify Singapore's energy supply and reduce carbon emissions, they also bring in investment, create jobs and contribute to the growth of the clean energy sector in partner countries such as Indonesia, he added. Eric Lombard, France's minister of the economy, finance and industry, attended the presentation. This was in conjunction with French President Emmanuel Macron's state visit to Singapore. Dr Tan See Leng, minister-in-charge of energy and science and technology, was also present. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Imelda Tanoto, managing director at RGE, said that the conditional licence was a key milestone, affirming its role in advancing the region's decarbonisation goals. Current status of electricity import EMA's Gan noted: 'To date, EMA has granted 3 GW of conditional licences for electricity imports from Indonesia, as well as 4.35 GW of conditional approvals for electricity imports comprising 0.4 GW from Indonesia, 1 GW from Cambodia, 1.2 GW from Vietnam and 1.75 GW from Australia.' She highlighted different operational timelines for the projects. Gan noted that not all projects awarded conditional approvals or conditional licences will be implemented, as the importers make business decisions on whether to proceed with their plans after more detailed analysis. On Friday, Singa Renewables also inked a memorandum of understanding with Singapore Energy Interconnections – a newly incorporated company appointed by the Singapore government – to jointly develop a subsea interconnector to enable electricity imports from Indonesia to Singapore, a step to enhance regional power connectivity. Singa Renewables, which aims to achieve commercial operations from 2029, received conditional approval from EMA in September 2024. 'Since then, the project has made substantive progress, with marine surveys and feasibility studies completed. These are key milestones in demonstrating the project's technical and commercial viability,' according to EMA's release. The conditional licence was granted to Singa Renewables after Singapore-headquartered RGE and France's TotalEnergies on Wednesday signed a co-investment agreement for a solar photovoltaic plant with integrated battery energy storage under Singa Renewables. When the obligations in the conditional licences are fulfilled – which includes securing all necessary financing – EMA may subsequently issue the companies an electricity importer licence to commence construction and commercial operations.
The Star
3 days ago
- Automotive
- The Star
Rolls-Royce to operate new aero engine facility in Beijing
Airbus showcases the model of its latest passenger aircraft at the 7th China International Import Expo in Shanghai in November. YIN LIQIN/CHINA NEWS SERVICE BEIJING: Rolls-Royce's first aero engine maintenance, repair and overhaul joint venture in the Chinese mainland is on track to begin operations by the end of 2025, said a senior executive of the British aircraft engine manufacturer. The new facility in the northeastern suburbs of Beijing marks the aero engine giant's significant expansion in one of the world's fastest-growing aviation markets, indicating the company's optimism about the Chinese market and its recognition of the country's supply chain. Beijing Aero Engine Services Ltd, a JV with Air China, is set to initially service Trent 700 engines for Airbus A330 aircraft before expanding to Trent XWB and Trent 1000 engines for Airbus A350 and Boeing 787 aircraft, respectively, said Troy Wang, executive vice-president for Greater China at Rolls-Royce, in an exclusive interview with Xinhua News Agency. "At its full capacity, which is expected to be achieved in the mid-2030s, BAESL will be able to support up to 250 shop visits per year," said Wang. The facility, which will employ up to 800 people at full capacity, represents a strategic growth initiative in China, Rolls-Royce's third-largest single-country market globally by revenue. Prior to BAESL, Rolls-Royce has been servicing Chinese mainland customers through its global MRO network, including HAESL in Hong Kong, which was established in 1997. The BAESL project is the latest in a series of investments by Rolls-Royce in China, including five JVs with Chinese partners. According to a report released by Aviation Industry Corporation of China, China's aviation sector is projected to require over 8,200 new passenger aircraft by 2043 to meet growing demand, including more than 1,500 wide-body jets. "China is not only a market, but also an important part of our supply chain," said Wang. He highlighted that Rolls-Royce has built a wide network of over 50 suppliers across the country, which manufacture key engine components and parts while "embedding digital and automation innovation capability". BAESL is being built as a "world-leading digitally enabled aero engine repair and overhaul shop" incorporating the latest digital technology. The JV is already partnering with leading digital solution providers in China to develop AI-enabled capabilities. China's aviation sector has shown remarkable resilience and growth potential despite global economic uncertainties as its industrial ecosystem continues to demonstrate competitiveness in "cost, quality and lead time", Wang said. Last year, Rolls-Royce expanded its JV in China with Guangxi Yuchai Machinery Co Ltd, a Chinese internal combustion engine manufacturer, to address the country's fast-growing market. - China Daily/ANN
Yahoo
4 days ago
- Business
- Yahoo
AT&T aims to leverage Lumen ‘Mass Markets' buy to bury US rivals
The US telco operators like AT&T feel an awful lot like schoolchildren these days, hustling to hand in their homework before the final school bell of the year ushers in the summer, and the capstone project for this scholastic year is consolidation. The recent announcement of its agreement to purchase Lumen's Mass Markets fibre business for $5.75bn was AT&T's turn in front of the class. AT&T's release on its Lumen consumer fibre M&A action hit the newswires on the heels of Charter and Cox's announced $34.5bn mega-cable player tie-up the previous week. Moreover, that Charter-Cox deal that was itself announced on the very same day that Verizon got signoff from the Federal Communications Commission on its planned $20bn acquisition of Frontier. Meanwhile, T-Mobile has already knocked out its Lumos deal, regulatory approval for its acquisition of the UScellular operation is imminent, and the company will bring its Metronet joint venture (JV) action into the station shortly after that. The fervor of consolidation activity is an offshoot of the increasing competitive crosswinds incumbent US operators are feeling. For cable operators, that would be the two-fold pressure caused by the steady creep of fibre overbuilders and the rapid incursion from 5G fixed wireless access. On the flipside of that coin, the MVNO outfits at Charter and Comcast continue to lock down large chunks of the growth share in the US wireless space quarter after quarter. Consequently, as each camp's go-to-market strategies adjusted to increased convergence positioning, both cable companies and telcos alike recognised the need grow the spaces where they can enjoy local market access tech superiority, insulating themselves somewhat as those crosswinds pick up gale-force speed. The announced AT&T-Lumen deal, which comes with a price tag below the $6bn-to-$9bn asset valuation for Lumen's consumer fibre business, will see AT&T pick up the operation currently selling under Lumen's 'Quantum Fiber' brand. That would entail around one million customers as well as more than four million total fibre passings across 11 US states, with Denver, Colorado; Las Vegas, Nevada; Minneapolis-St. Paul, Minnesota; Orlando, Florida; Phoenix, Arizona; Portland, Oregon; Salt Lake City, Utah; and Seattle, Washington among the most significant markets in the acquired fibre footprint. The operators have very little fibre overlap, and the transaction expands AT&T's fibre coverage from 21 states to 30. AT&T's plan to house the acquired assets in a wholly owned subsidiary – with AT&T serving as its anchor tenant – shows the company looking to leverage the less capital-intensive approach to maximising its fibre deployment efforts afforded by the open-access fibre model. Furthermore, AT&T intends to recoup costs by finding an equity partner within a year of closing the transaction. AT&T boasted a fibre subscriber penetration rate of 40% throughout 2024, and the company is confident in its ability to accelerate Lumen's established penetration rate within the acquired footprint, which currently sits at 25%. Consequently, AT&T will find itself poised to accelerate on the rock-steady 200,000+ broadband net adds/quarter that the operator has reported for 21 consecutive quarters. Buying Lumen's fibre construction capabilities and absorbing its existing infrastructure and customer base aligns seamlessly with AT&T's main strategic objectives. By integrating its fibre assets with 5G wireless services, AT&T looks to enhance customer retention and foster more enduring, profitable business relationships. The company currently reports that four of every ten fibre households are converged with AT&T mobile; that could make for significant and fast uptake if AT&T has similar successes in Lumen's non-converged footprint. With the deal, A&T is also increasing its scale ambitions and raising its fibre target to 60 million locations across the US by 2030. The expanded footprint will eclipse Verizon's eventual target of 35 to 40 million homes as well as T-Mobile's goal of reaching an estimated 12 to 15 million locations by 2030. "AT&T aims to leverage Lumen 'Mass Markets' buy to bury US rivals" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hindu
6 days ago
- Business
- The Hindu
ONGC-led JV resumes crude production from offshore PY-3 field in Cauvery Basin
A joint venture led by Oil and Natural Gas Corporation (ONGC) has commenced crude oil production from the PY-3 field, located offshore in the Cauvery Basin and shut for almost 14 years. Originally brought onstream in 1997, the field had been shut since July 2011. The resumption by the JV that comprises Hardy Exploration & Production (India) Inc. and Invenire Petrodyne, besides the State-owned ONGC, follows a multi-phase revised field development plan in place for reviving the production. Integrity assessment, conditioning and activation of subsea well PD3SA; installation of subsea infrastructure; and hook-up to the floating production, storage and offloading (FPSO) vessel Svetah Venetia figured in Phase I of the revised FDP that has since been completed. The FPSO is being used to process and separate oil, gas and water. The produced oil is stored on the FPSO and offloaded to shuttle tankers for transport to refineries, ONGC said on Sunday. Phase II of the FDP will involve drilling of additional wells and the application of enhanced oil recovery (EOR) techniques to boost output from 'this prolific field', which yields light, sweet crude oil. Invenire Energy Group firm Hardy Exploration & Production (India) is the operator of the block with an effective 22.79% participating interest. ONGC holds 50.63% and Invenire Petrodyne remaining 26.58% interest. Invenire Energy Chairman Manish Maheshwari and ONGC's Director (Strategy and Corporate Affairs) Arunangshu Sarkar, in a joint statement, appreciated the Union Ministry of Petroleum and Natural Gas and the Directorate General of Hydrocarbons (DGH) for their 'support, guidance and unwavering encouragement, which were instrumental in achieving this milestone.' Mr. Maheshwari said the development marks a significant step in Invenire's operational journey and reaffirms the JV's commitment to contributing to India's energy security.
