Latest news with #VodafoneIdeaLtd
Mint
2 days 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.
Mint
4 days ago
- Business
- Mint
Vi plans another Rs20,000 cr fundraise, remains hopeful of government support
Vodafone Idea Ltd's board approved raising another ₹ 20,000 crore through a further public offering (FPO), private placement, or other permissible mode to stay afloat, it said in an exchange filing on 30 May after reporting losses for another quarter amid never-ending financial troubles. India's third-largest telecom operator said it was confident of gaining government support, successfully arranging funding, and generating cash flow from operations, and announced that a Capital Raising Committee will evaluate and decide on the potential route of fundraising. The debt-laden company declared its March quarter results days after pleading before the Supreme Court for a waiver of massive government dues as banks refused it further loans. The court had rejected the plea. In the petition, the telco had said it would not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues worth ₹ 84,000 crore linked to adjusted gross revenue (AGR). Before approaching the court, the company had submitted a similar representation to the government, seeking a waiver of interest, penalty, and interest on penalty on its AGR dues, which was not entertained. 'In the company's view, this dismissal does not preclude it from further engaging with the Government of India based on its foreseeable cash flows for arriving at an appropriate solution on the AGR matter before the next instalment date,' the telecom operator said in its financial statement. However, a government four-year moratorium on payments of AGR and spectrum dues for telecom companies, including Vodafone Idea, ends in September, making it even more difficult for the company. In the absence of any relief, starting 31 March 2026, it must pay an annual instalment of over ₹ 18,000 crore for the next six years towards AGR and spectrum dues to the government. In 2025-26 itself, it will have to pay ₹ 16,428 crore towards AGR dues and ₹ 2,539 crore towards deferred spectrum dues. Vodafone Idea said amounts pertaining to some of the years are subject to correction/revision due to the disposal of representations and any other outcome of litigation. The amounts will be finally determined by 31 December 2025 and are payable in six equal instalments after the moratorium period starts from 31 March 2026. But first, it desperately needs an operational turnaround. In line with the Street estimates, its net loss for the fourth quarter of 2024-25 widened sequentially to ₹ 7,166 crore from ₹ 6,609 crore. The same was ₹ 7,675 crore a year ago. The sequential rise in losses can be attributed to an increase in expenses, especially finance costs, which include interest payments on debt and other liabilities. Finance costs, accounting for 59% of its revenue from operations, rose 9% quarter-on-quarter and 3% year-on-year to ₹ 6,471 crore. An average of six brokerage firms' estimates had pegged losses at ₹ 7,162.5 crore. Its revenue from operations rose 4% on-year to ₹ 11,014 crore, in line with estimates, owing to improvement in its subscriber mix and an increase in postpaid users. The revenue, however, was down nearly 1% sequentially owing to continuous subscriber loss, largely in the lower-end segment. '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,' said Akshaya Moondra, chief executive of Vodafone Idea. '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,' Moondra said, adding that the company remains engaged with lenders to secure debt financing to support our broader capex plans of ₹ 50,000–55,000 crore. Owing to a rise in revenue on a year-on-year basis, Vodafone Idea's earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 7.5% to ₹ 4,660 crore. On a quarterly basis, Ebitda fell 1.1% due to an increase in expenses and a decline in revenue from operations. Vodafone Idea declared its results late Friday night, after the bourses closed. Its shares closed 3.2% lower at ₹ 6.92 on BSE. Even as Vodafone Idea has been losing subscribers for a long time now, the company's subscriber churn rate has slowed down during the March quarter. Compared to the loss of 5 million subscribers each in the September and December quarters, its subscriber churn slowed down 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 company's 4G/5G subscribers rose to 126.4 million from 126 million in the quarter-ago period. The company's postpaid subscribers were 25.6 million, up from 25.2 million in the preceding quarter and 23.9 million in the year-ago period. The telco has been improving its 4G services with network upgrades and has also started rolling out 5G, with Mumbai, Chandigarh, and Patna being the first circles. On 15 May, it launched 5G in Delhi and said it was targeting to expand the services in all 17 circles by August 2025. However, analysts at BofA Securities said in a 7 April note that VIL (Vodafone Idea) was still some point away from showing positive net adds. Its average revenue per user (Arpu), a key performance metric, rose marginally to ₹ 164 from ₹ 163 in the preceding quarter, in line with estimates. Two fewer days during the March quarter caused a largely flat Arpu, offsetting the company's improved subscriber mix. Further, the impact of the July tariff hikes also ebbed. In comparison, Airtel's India Arpu was flat at ₹ 245 in the quarter, whereas Reliance Jio's Arpu rose to ₹ 206.2 from ₹ 203.3 in the December quarter. Vodafone Idea has been grappling with huge dues. As of 31 March, its total government dues stood at around ₹ 2 trillion, including ₹ 1.19 trillion in spectrum dues and ₹ 83,400 crore AGR dues. Its outstanding debt from banks (including interest accrued but not due) was ₹ 2,345 crore. In March, the government offered another reprieve to the company by converting an additional ₹ 36,950 crore worth of statutory dues into equity. This was the second dues conversion that took the government's stake in Vodafone Idea to 49%. On 2 June, at the earnings call, analysts and investors will closely watch for the company's commentary on the AGR dues, any clarity from the government on possible relief, fundraising prospects, the company's sustainability post-2025-26, and future tariff hikes.
Mint
6 days ago
- Business
- Mint
Vodafone Idea Q4 preview: Losses mount, AGR burden clouds outlook
NEW DELHI : Vodafone Idea Ltd is set to report a loss for another quarter amid mounting financial pressure and fresh concerns over its survival owing to pending adjusted gross revenue (AGR) dues. The telecom operator, which will declare March quarter earnings on 30 May, is expected to report a net loss of ₹7,162.5 crore—an average of six brokerage firms' estimates—slightly narrower year-on-year but widening sequentially. Its loss stood at ₹6,609 crore in the preceding quarter and ₹7,675 crore in the year-ago period. Revenue is projected to come in at ₹11,030 crore, reflecting a 4% improvement from the year-ago period but down marginally from ₹11,117 crore in the preceding quarter. Better network, slower subscriber churn A sequential widening of losses is expected due to higher operating costs from expanding the network footprint. Besides, weaker revenue growth owing to continuous subscriber loss is also expected to weigh on Vodafone Idea's financials. Also Read: Sword of Damocles hangs over Vodafone Idea's bank guarantees A weak top line and higher expenses are also expected to affect the company's earnings before interest, taxes, depreciation and amortisation (Ebitda). 'We expect Ebitda to decline 5.2% on-quarter/ +3.1% on-year to ₹4,470 crore on a dip in revenue, and operating cost is likely to rise from expansion in network footprint," said analysts at ICICI Securities in a note dated 5 April. Vodafone Idea has been improving its 4G services and has also started rolling out 5G, with Mumbai, Chandigarh, and Patna being the first circles. On 15 May, the company launched 5G in Delhi and said it was targeting to expand the services in all 17 circles by August 2025. Analysts expect the company to spend the guided ₹8,000 crore capex in the second half of 2024-25, implying a sharp increase in capex in the March quarter. Even though the company has been losing subscribers for some time, analysts said an improvement in the network could slow its subscriber churn. Compared to the loss of 5 million subscribers each in the September and December quarters, the company's subscriber churn is expected to slow down to around 2.5 million in the March quarter, according to analysts' estimates. This is because of network improvement starting November 2024 and an increase in the company's 4G subscribers. The company is experiencing churn among the lower-end revenue users. As of December end, Vodafone Idea had 200 million mobile subscribers. 'We believe that Vodafone Idea is still some point away from showing positive net adds. We expect Q4 Arpu (average revenue per user) to be largely flat on-quarter," said analysts at BofA Securities in a 7 April note. Also Read: Two months after second lifeline, Vodafone Idea again raises survival fears An average of six brokerage firms' estimates shows that Vodafone Idea's Arpu is expected to increase marginally to ₹164 from ₹163 in the previous quarter. A largely flat Arpu can be attributed to two fewer days during the March quarter, which offset the benefit of the company's improved subscriber mix. Further, the July 2024 tariff hike has completely passed through the company's Arpu by end-Q3FY25, analysts at JM Financial said in a 4 April note. AGR spectre When the company reports its earnings on Friday, investors will closely look for its commentary on the AGR dues, any clarity from the government on possible relief, fundraising prospects, the company's sustainability post 2025-26, and future tariff hikes. In a 27 May exchange filing, Vodafone Idea said it would also consider and evaluate any and all proposals for raising funds in one or more tranches, either by way of a rights issue or further public offer or private placement (including preferential allotment or qualified institutions placement) or through any other permissible mode, in its board meet on Friday. On 17 April, Vodafone Idea submitted a representation to the government, seeking a waiver of interest, penalty, and interest on penalty on its AGR dues. The telco said the AGR liability demand from the government stands at ₹83,400 crore as of March end, with an annual instalment of approximately ₹18,000 crore due starting 31 March 2026 for the next six years. In comparison, Vodafone Idea generated ₹8,400-9,200 crore cash annually in the last three years. In a court petition, it said it would not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues linked to AGR. The Supreme Court, however, dismissed the plea on 19 May. Also Read: No plan to merge Vodafone Idea and BSNL: Scindia Vodafone Idea has been trying to raise bank funding of ₹25,000 crore for quite some time now. However, banks want the AGR matter resolved before processing further loans. '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. In March, the government offered another reprieve to the company by converting an additional ₹36,950 crore worth of statutory dues into equity. The second dues conversion took the government's stake in Vodafone Idea to 49%.
Business Standard
19-05-2025
- Business
- Business Standard
Protean eGov Technologies Ltd leads losers in 'A' group
Bharat Bijlee Ltd, Vodafone Idea Ltd, CreditAccess Grameen Ltd and Gujarat Ambuja Exports Ltd are among the other losers in the BSE's 'A' group today, 19 May 2025. Bharat Bijlee Ltd, Vodafone Idea Ltd, CreditAccess Grameen Ltd and Gujarat Ambuja Exports Ltd are among the other losers in the BSE's 'A' group today, 19 May 2025. Protean eGov Technologies Ltd tumbled 20.00% to Rs 1143.05 at 14:46 stock was the biggest loser in the BSE's 'A' the BSE, 3.31 lakh shares were traded on the counter so far as against the average daily volumes of 59437 shares in the past one month. Bharat Bijlee Ltd lost 9.96% to Rs 3112.4. The stock was the second biggest loser in 'A' the BSE, 30442 shares were traded on the counter so far as against the average daily volumes of 4639 shares in the past one month. Vodafone Idea Ltd crashed 8.96% to Rs 6.71. The stock was the third biggest loser in 'A' the BSE, 1988.27 lakh shares were traded on the counter so far as against the average daily volumes of 687.08 lakh shares in the past one month. CreditAccess Grameen Ltd corrected 7.14% to Rs 1118.9. The stock was the fourth biggest loser in 'A' the BSE, 1.37 lakh shares were traded on the counter so far as against the average daily volumes of 27254 shares in the past one month. Gujarat Ambuja Exports Ltd slipped 6.86% to Rs 116.15. The stock was the fifth biggest loser in 'A' the BSE, 1.95 lakh shares were traded on the counter so far as against the average daily volumes of 54753 shares in the past one month.
Business Upturn
25-04-2025
- Business
- Business Upturn
Goldman Sachs buys 60 crore shares of Vodafone Idea for Rs 458 crore
By News Desk Published on April 25, 2025, 19:42 IST Vodafone Idea Ltd. (NSE: IDEA) witnessed significant market activity today, marked by substantial share transactions and a notable decline in stock performance. The company's stock closed at ₹7.46, down 0.47 (5.93%) from its previous close of ₹7.93, as per the latest market summary at 3:30 pm IST. Major Share Transactions Nokia Solutions and Networks India sold 103 crore shares of Vodafone Idea, amounting to ₹786 crore, at an average price of ₹7.65 per share. This large-scale transaction suggests a strategic divestment by the vendor. Concurrently, Goldman Sachs acquired 60 crore shares for ₹458 crore, indicating ongoing interest from institutional investors despite the stock's downward trend. Stock Performance The stock opened at ₹7.95 and hit a high of ₹8.21 during the day, but it steadily declined to its closing value of ₹7.46, with a low of ₹7.43. The market capitalization stands at ₹80,83K crore, with a 52-week high of ₹19.18 and a 52-week low of ₹6.61. The intraday chart reflects a volatile session, with the stock unable to sustain early gains. Market Context Today's activity follows reports of a 1.44% equity change worth ₹823 crore in block deals, as noted in real-time market updates. This movement underscores the fluid investor sentiment surrounding Vodafone Idea, a company formed in 2018 through the merger of Vodafone India and Idea Cellular. News desk at
