Latest news with #Moondra
New Indian Express
7 hours ago
- Business
- New Indian Express
Vi still in talks with govt on AGR dues after Supreme court's dismissal of plea
'What the government will do I can't comment on behalf of the government post judgment. We are continuing to engagement with the government to find the solution with the AGR dues,' said Moondra. "Our view is that the government can provide relief," Moondra reiterated. "In some ways, if you look at the 2021 reforms package, the government took the initiative, and I see no reason why the government should be constrained in any way from offering the relief it decides to do so. However, Communications Minister Jyotiraditya Scindia reportedly refused to entertain any plan to provide relief on the AGR front to telecom companies. He also mentioned that Vodafone Idea will not receive any further equity conversion from the government beyond the current 49%, and it's now the company's responsibility to manage its profit and loss and balance sheet. In its quarterly result, Vi reported a consolidated net loss of Rs 7,166.1 crore for the quarter ending March. It is marginal improvement from Rs 7,674.6 crore recorded in the same period last year. However, losses widened compared to the previous quarter's Rs 6,609.3 crore. The company's revenue grew 3.8% year-on-year to Rs 11,013.5 crore, driven by tariff hikes and customer upgrades. The average revenue per user (ARPU) rose to Rs 175. The company also announced plans to raise another Rs. 20,000 crore through a further public offering (FPO), private placement, or other permissible modes. On the fundraising, Moondra mentioned that discussions are ongoing with banks, but banks want clarity on the AGR issue. Vi stated its intention to launch 5G services across 17 telecom circles by August.
Time of India
14 hours ago
- Business
- Time of India
Engaged with govt to find solution to AGR issue post plea dismissal by SC: Vodafone Idea CEO
Vodafone Idea (VIL) on Monday said it is engaged with the Centre to find a solution to the AGR issue , with CEO Akshaya Moondra stating he sees no reason why the government should be constrained in any way to offer relief. During VIL's investor call post Q4 and FY25 earnings, Moondra said the Average Revenue Per User (ARPU) in India is the lowest globally, and that industry's returns are below cost of capital. The VIL top boss stressed that the industry needs to move towards a pricing model, where heavy data users contribute more proportionally to their higher usage, than the current pricing structure -- where incremental data usage comes at an extremely low, unsustainable price. On the AGR issue, Moondra said the telco continues its engagement with the government to find a solution. "As far as the government relief is concerned, I think we are engaged with the government... what the government will do, I cannot comment on their behalf. But definitely post the judgment, we continue with our engagement with the government to find a solution to the AGR matter," he said. Live Events On whether the SC's move would allow the government to offer support to the company or specific clarity would be needed for the Centre to proceed further, Moondra said: "So our view is that the government can do..." At the time when the 2021 reforms package was announced, there had been some PIL filed in the Supreme Court , Moondra said and added that even then, the apex court had taken the view that it is a policy matter which is within the purview of the government. "And that time, also the Supreme Court had, when their final order was given, they had stated to the effect that this is a policy matter which is within the purview of the government, and they would not interfere in it. So in some ways, if you look at the reforms package of September 2021, the government has taken the initiative, and I see no reason why the government should be constrained in any way to offer relief, which it decides to do," he claimed. Moondra clarified that the government does not intend to take a position in the company's board given its 49 per cent stake at present, post recent dues to equity conversion. "There is no intent to take up any board seat, the shareholding of the government is a consequence of the government providing support in reducing dues," he said. The comment assume significance as the embattled telecom operator had been seeking waiver of around Rs 30,000 crore AGR dues, as it struggles with statutory liabilities and dwindling subscriber base -- as per the latest subscriber data by TRAI, the mobile customer base of VIL shrunk 6.47 lakh in April to 20.47 crore. Last month, the Supreme Court dismissed its plea, dealing a big blow to the crisis-ridden telecom operator. Just weeks before that, VIL had sent an SOS to the telecom department stating that without the government's timely support on adjusted gross revenue or AGR, it will not be able to operate beyond FY26, as the bank funding discussions will not move forward. Debt-ridden telco Vodafone Idea on Friday reported narrowing of losses for the March quarter to Rs 7,166.1 crore and its board greenlit fundraising of up to Rs 20,000 crore subject to shareholders' approval and statutory nods. The revenue for the fourth quarter (Q4FY25) rose 3.8 per cent year-on-year to Rs 11,013.5 crore. The Q4 losses narrowed to Rs 7,166.1 crore for the just-ended quarter, from Rs 7,674.6 crore a year ago. For the full year FY25, the losses narrowed to Rs 27,383.4 crore, as against Rs 31,238.4 crore in the previous fiscal. The full year revenue rose 2.1 per cent to Rs 43,571.3 crore. The company had said that the up to Rs 20,000 crore fundraising in one or more tranches will be "either by way of further public offer or private placement or through any other permissible mode as may be considered appropriate..." PTI MBI BAL DRR Economic Times WhatsApp channel )
Mint
15 hours ago
- Business
- Mint
Vodafone Idea resumes relief talks with govt., links capex to bank funding
Vodafone Idea Ltd has begun discussions with the government to explore a resolution on the telecom operator's substantial dues, barely two weeks after the Supreme Court rejected its plea for a waiver on related payments. The struggling company is also engaging with banks to secure debt funding for its long-term expansion, chief executive Akshaya Moondra said, adding that banks would want clarity on the dues the telco owes to the government before they agree to lend. But it is not preventing the discussions from moving forward, Moondra said. 'I see no reason why the government should be constrained in any way to offer relief…,' Moondra said on Monday during a call with analysts to discuss Vodafone Idea's March-quarter earnings. Vodafone Idea is set to incur capital expenditure of ₹ 5,000-6,000 crore for the first half of 2025-26 to enhance its network and infrastructure. However, its next leg of spending would be dependent on funds from banks, Moondra said. The Supreme Court on 19 May dismissed writ petitions by Vodafone Idea, Bharti Airtel Ltd and Tata Teleservices Ltd seeking relief on interest, penalty, and interest on penalty on adjusted gross revenue (AGR) dues to the government. Vodafone Idea owes ₹ 83,400 crore in AGR dues to the government and had sought a waiver on over ₹ 45,000 crore comprising interest, penalty, and interest on penalty. While rejecting the petitions, the Supreme Court bench comprising Justices J.B. Pardiwala and R. Mahadevan clarified the court would not stand in the way if the government chose to step in. 'If the government wants to help you, we are not coming in your way,' Pardiwala had said. However, the court's written order, issued on 21 May, makes no reference to that remark, which was widely seen as a green light for possible relief. Vodafone Idea, India's third-largest telecom operator, is grappling with huge regulatory dues of around ₹ 2 trillion. The telecom operator said in its recent petition to the Supreme Court that it would not be able to operate beyond this fiscal year without bank funding, which remains elusive as lenders remain wary of its AGR dues worth more than ₹ 84,000 crore. Starting 31 March 2026, Vodafone Idea must pay an annual instalment of over ₹ 18,000 crore for the next six years towards AGR and spectrum dues to the government. The dues are under moratorium, which will expire in September. In 2025-26 itself, Vodafone Idea will have to pay ₹ 16,428 crore towards AGR dues and ₹ 2,539 crore towards deferred spectrum dues. 'The government may have to extend the moratorium or increase its stake in the telco,' said analysts at IIFL Capital in a 20 May note. Vodafone Idea has been trying to raise bank funding of ₹ 25,000 crore for a long time now. The company said a recent credit rating upgrade as well as the government's recent conversion of dues worth ₹ 36,950 crore into equity has supported conversations with the lenders. 'There are some activities which we have to finish, which are currently in progress. We will again get to the point of discussions with the banks somewhere this month once some of the pre-requisites in terms of those actions and activities are completed,' Moondra said. In May last year, Vodafone Idea said it would incur a capital expenditure of ₹ 50,000-55,000 crore over the next three years for expanding its 4G network and launching its 5G service. 'A large part of the capex will be implemented in the current quarter. In terms of our next round of capex, we have to decide and firm up our plan. It also has some dependence on funding. At least for this quarter and coming quarter, we are on track of incurring a capex of around ₹ 6,000 crore,' Moondra said. '(With) the capex, which is already under execution, we should be reaching a level of 84% of (4G) population coverage. I believe we will move up from 84%, but to get to 90% (the capex) has got linkages with bank funding,' Moondra said, adding that Vodafone Idea had increased its 4G coverage to 83% as of March-end from 77% a year earlier. Vodafone Idea incurred a capex of ₹ 4,230 crore in the January-March period, its highest in a quarter since the merger of Vodafone India and Idea Cellular in 2018. For FY25, the capex was at ₹ 9,570 crore, up from ₹ 1,850 crore in FY24. In an exchange filing on 30 May, Vodafone Idea said its board had approved raising another ₹ 20,000 crore through a further public offering (FPO), private placement, or other permissible mode. A capital raising committee will evaluate and decide on the potential route of fundraising, the company said. Moondra called for a tariff hike to help increase the return on capital employed for telecom operators. Despite a price increase in July 2022, the average revenue per user (Arpu) for telecom operators in India is still among the lowest in the world, he said. 'To ensure a fair return on significant investments and support future capital expenditure in the telecom industry, further tariff increases are essential. Additionally, the industry needs to move towards a pricing model where heavy data users contribute more proportionally to the high usage than the current pricing structure where the incremental data usage comes at an extremely low, unsustainable price,' Moondra said. According to Moondra, there is no room to increase the tariffs much at the lower level and the industry collectively has to switch to a new tariff structure. Last month, Bharti Airtel vice chairman and managing director Gopal Vittal also called for tariff restructuring to sustain the domestic telecom sector's financial health. Vittal too had explained that a tariff restructuring would mean reducing data allowances on some packs and charging more for those who can afford to pay. Vodafone Idea's net loss in the fourth quarter of 2024-25 widened to ₹ 7,166 crore from ₹ 6,609 crore in the third quarter and ₹ 7,675 crore a year ago, due to an increase in expenses, especially finance costs, which include interest payments on debt and other liabilities. Finance costs, accounting for 59% of the telecom operator's revenue from operations, rose 9% quarter-on-quarter and 3% year-on-year to ₹ 6,471 crore. Revenue from operations rose 4% on-year to ₹ 11,014 crore. The revenue, however, was down nearly 1% sequentially owing to subscriber loss, largely in the lower-end segment. The company's subscriber churn rate slowed during the March quarter. Compared to a loss of 5 million subscribers each in the September and December quarters, Vodafone Idea's subscriber churn slowed to 1.6 million in the fourth quarter. As of 31 March, it had 198.2 million mobile subscribers. Sequentially, its blended subscriber churn fell to 4.1% from 4.5%. The number of 4G subscribers nudged up to 126.4 million in the fourth quarter from 126 million three months earlier. Vodafone Idea shares climbed 1.73% to end Monday's trading session on BSE at ₹ 7.04 each.
Time of India
15 hours ago
- Business
- Time of India
Vodafone Idea in talks with government on AGR relief: CEO Akshaya Moondra
NEW DELHI: Vodafone Idea CEO Akshaya Moondra, during an investor call following the release of the company's Q4 and FY25 financial results, confirmed that the company is actively engaged in discussions with the government regarding the long-standing Adjusted Gross Revenue (AGR) issue. He noted that there are no existing restrictions that prevent the government from extending support. "As far as the government relief is concerned, I think we are engaged with the government... what the government will do, I cannot comment on their behalf. But definitely post the judgment, we continue with our engagement with the government to find a solution to the AGR matter," Moondra said, as quoted by news agency PTI. Highlighting broader challenges in the telecom sector, Moondra pointed out that India continues to have the lowest Average Revenue Per User (ARPU) globally, while industry returns remain below the cost of capital. He called on the urgent need for a revised pricing framework, stating that higher data consumption should be charged proportionally more- a departure from the current pricing model. Moondra also referred to the 2021 telecom reforms, emphasizing that despite Public Interest Litigations (PILs) in the Supreme Court, the court upheld that policy decisions fall within the government's domain. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3BHK Transformation Possible for ₹4.5 Lakh? HomeLane Get Quote Undo He suggested this precedent indicates the government retains the authority to implement relief measures for the sector. The CEO further clarified the government's position regarding its 49 per cent stake in Vodafone Idea, acquired through a recent dues-to-equity conversion. "There is no intent to take up any board seat, the shareholding of the government is a consequence of the government providing support in reducing dues," he stated. This clarification gains importance as Vodafone Idea seeks a waiver of approximately Rs 30,000 crore in AGR dues. The company is grappling with statutory liabilities and a declining subscriber base. According to TRAI data, VI lost 6.47 lakh mobile users in April, bringing its total to 20.47 crore subscribers. Following the Supreme Court's dismissal of its AGR relief plea, Vodafone Idea informed the Department of Telecommunications that its operations beyond FY26 would be unsustainable without government intervention, a key concern in ongoing discussions with banks regarding future funding. Also read: 'No more conversion of equity in Voda-Idea' Financially, the company reported a reduced net loss of Rs 7,166.1 crore for the March quarter. Its revenue for Q4FY25 rose 3.8 per cent year-on-year to Rs 11,013.5 crore. For the full fiscal year, losses narrowed to Rs 27,383.4 crore from Rs 31,238.4 crore in FY24. To strengthen its financial position, Vodafone Idea's board has approved a fundraising plan of up to Rs 20,000 crore, subject to regulatory and shareholder approvals. The capital infusion may be raised 'either by way of further public offer or private placement or through any other permissible mode as may be considered appropriate,' the company said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 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.
