Home Business 3rd Largest Telecom Vodafone Idea reports Rs 73,878 crore of net loss

3rd Largest Telecom Vodafone Idea reports Rs 73,878 crore of net loss

Vodafone Idea highest ever loss by any indian firm at Rs 73,878 core.

On Wednesday Vodafone Idea reported a staggering Rs 73,878 crore of net loss in FY20 which is the highest ever loss an indian firm.

The firm, which has got to pay Rs 51,400 crore dues after the apex court ordered the non-telecom revenues to be included in calculating statutory dues, said the liability has “cast significant doubt on the company’s ability to continue as a going concern”.

In a regulatory filing, Vodafone Idea (VIL) reported widening of March quarter net loss to Rs 11,643.5 crore. Its losses stood at Rs 4,881.9 crore within the same period a year ago and Rs 6,438.8 crore in previous October-December quarter.

Vodafone Idea biggest loss

The Department of Telecom (DoT) estimates the firm’s adjusted gross sales (AGR) dues at Rs 58,254 crore for period up to FY 2016-17, but the corporate put the dues at Rs 46,000 crore “after adjustment of certain computational errors and payments made within the past not considered within the DoT demand.”

Of the entire dues, it’s made a payment of Rs 6,854.4 crore.

The company took successful of Rs 1,783.6 crore on account of AGR-related liabilities, and Rs 3,887 crore on account of one-time spectrum charges (OTSC), both of which were recognised as exceptional items during the quarter ended March 2019.

Revenue from operations for the just-ended quarter came in at Rs 11,754.2 crore.

For the complete year FY20, losses ballooned to Rs 73,878.1 crore. Vodafone Idea’s losses stood at Rs 14,603.9 crore in FY19.

The company said that the financial results for the year ended March 31, 2020, aren’t like those reported for an equivalent period of the preceding year (merger between Vodafone India and Idea Cellular had taken effect in August 2018).

The revenue from operations for full year FY20 stood at Rs 44,957.5 crore. an equivalent was Rs 37,092.5 crore in FY19.

In a statement, the corporate said that the revenue had witnessed strong growth of six per cent quarter-on-quarter, driven by prepaid tariff hike effective December 2019.

Ravinder Takkar, MD and CEO, Vodafone Idea said “Our specialise in rapid network integration, also as 4G coverage and capacity expansion, has further improved customer experience.

“We thus still lead the league tables on 4G data download speeds across several states, metros and enormous cities. we’ve achieved our full opex merger synergy target.”

He added that subsequent Supreme Court hearing on AGR matter is scheduled to be held within the third week of July.

“Meanwhile, we still actively engage with the govt seeking a comprehensive relief package for the industry, which faces critical challenges,” he said.

Gross debt (excluding lease liabilities) as on March 31, 2020, was Rs 1,15,000 crore including deferred spectrum payment obligations thanks to the govt of Rs 87,650 crore.

“The network integration is in final stages of completion but has been impacted by the nationwide lockdown thanks to COVID-19. As of date, we’ve completed network integration in 92 per cent of total districts,” the corporate added.

Due to the continuation of nationwide lockdown, the remaining consolidation is predicted to require longer than initially expected, it said.

Its subscriber base eroded to 291 million in March quarter from 304 million in December quarter. Average revenue per user (ARPU) for Q4 improved to Rs 121 versus Rs 109 in Q3FY20, driven by the prepaid tariff hike effective from December 2019.

Vodafone Idea maintained it plans to monetise its 11.15 per cent stake in Indus Towers on completion of the Indus-Infratel merger.

VIL said that’s no material impact of the pandemic on its overall performance, but it continues to watch things closely.

On AGR dues, the corporate said that it’s recognised a complete estimated liability of Rs 46,000 crore.

“The total estimated liability of Rs 460,000 million stands reduced as at 31 March, 2020 to the extent of payment (Rs 68,544 million) made…,” the corporate said during a BSE filing.

With reference to OTSC levy, it said that Rs 3,890 crore has been recognised as exceptional item during the quarter.


Gold Prices in India Decline after soraing high for months

Gold prices in India fell today, tracking a decline in global markets and profit-taking at higher levels. On MCX, gold futures were...

Nepal PM KP Sharma Oli claims Lord Rama is Nepali not Indian

Nepal PM KP Sharma Oli have stirred a great controversy, he said Lord Rama is not Indian, he was Nepali. And Ayodhya...

BOARD Class 12 Result 2020: Check Scores Online

The Central Board of Secondary Education(CBSE) has declared class12 resuls. Check CBSE 12 resulth online. Student and parents...

Oppo preparing to announce next gen 125W fast charging technology

Oppo Quick 125W Fast Charging Tech to Launch on 15 July. The next Gen Fast Charging will surpass its own 65W charging.

TRAI stops Airtel Premium Plans for Platinum Users, violation of service norms

Bharti Airtel on 6 July announced faster & better 4G data speeds for its Platinum Users(paying Rs499 or more for a plan)....