INSUBCONTINENT EXCLUSIVE:
Vodafone Idea's gross debt stood at Rs 1.17 lakh crore at the end of September
Vodafone Idea on
Thursday reported a net loss of Rs
50,921.9 crore for the quarter ended September 30 - marking the biggest quarterly loss in India's corporate history
Provisions for outstanding government dues and penalty due to a one-time charge of Rs
25,677.9 crore levied by the Department of Telecommunications affected the company's financial performance in the quarter
In a regulatory filing, Vodafone Idea said its revenue from operations came in at Rs
10,844 crore in the second quarter of current financial year, as against Rs
7,663.5 crore in the corresponding period a year ago
Here are 10 things to know about this big story:Vodafone Idea's net loss stood way above Street estimates, due to the
payment of dues to the telecom department
Analysts had on an average expected the company to report a consolidated net loss of Rs
4,422 crore for the quarter, news agency Reuters reported citing Refinitiv data, although those figures did not include the one-time
charge.The telecom major had registered a net loss of Rs
4,973.8 crore for the quarter ended September 30, 2018
The numbers were not comparable as the merger of Vodafone India with Idea Cellular was completed on August 31, 2018, and therefore the
financials for the second quarter of 2018-19 included the figures of Vodafone India.Vodafone Idea's average revenue per user (ARPU) - a
key metric of profitability for telecom companies - came in at Rs
107 in the July-September period as against Rs
108 in the previous quarter
Its subscriber base dropped to 31.11 crore at the end of September, from 32 crore at the end of June.The Supreme Court last month upheld a
demand by the Department of Telecommunications (DoT) that wireless carriers pay Rs
92,000 crore in overdue levies and interest
Vodafone Idea and rival Bharti Airtel - two of the country's three main mobile carriers - will have to pay a bulk of this demand.The top
court's order on Adjusted Gross Revenue (AGR) matter "has significant financial implications for the industry", Vodafone Idea said."We are
in active discussions with the government seeking financial relief following the recent Hon'ble Supreme Court ruling," said Ravinder Takkar,
managing director and CEO, Vodafone Idea
The telecom service provider also said it was in the process of filing a review petition with the Supreme Court, and its ability to continue
as going concern is dependent on obtaining relief from the government and positive outcome of the proposed legal remedy.The company's
gross debt at the end of September stood at Rs
Analysts have previously warned that Vodafone Idea will be the worst hit after the Supreme Court ruling due to its already stretched balance
sheet, according to Reuters.Telecom providers in India pay the Department of Telecommunications (DoT) nearly 3-5 per cent of their adjusted
gross revenue (AGR) in usage charges for spectrum or airwaves and 8 per cent of AGR as licence fees.The DoT and the mobile carriers have
been at odds over the definition of AGR
The companies argue that AGR should comprise just revenue accrued from core services, while the DoT says AGR should include all
revenues.Meanwhile, Bharti Airtel earlier on Thursday reported a consolidated net loss of Rs
23,045 crore for the September quarter
Airtel said it made a provision of Rs
28,450 crore after the Supreme Court ruling.Get Breaking news, live coverage, and Latest News from India and around the world on
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