Q3 Results of Vodafone Idea with Consolidated Net Loss Narrows to Rs 4,532 cr on One-time Gain.
The quarter ended December, Vodafone Idea reported a consolidated net loss of Rs. 4,532.4 crore, today as against a net loss of Rs. 7,218.5 crore in the previous quarter. The company’s revenues for the period grew 1 percent on-quarter to Rs. 10,894 crore.
Analysts had expected the company to report a consolidated net loss of Rs. 6,463.2 crore on revenues of Rs. 10,842.28 crore. The company saw a one-time net gain of Rs. 1,696.5 crore during the quarter, which includes gains made on the sale of its stake in Indus Towers. The company had reported a one-time loss of Rs. 767.1 crore in the previous quarter.
“It is in active discussions with potential investors to raise capital after its board in the previous quarter had approved fundraising of Rs. 25,000 crore,” said Vodafone Idea. Vodafone Idea’s consolidated operating profit in the quarter rose 3.2 percent on a quarter-on-quarter basis to Rs. 4,286.2 crore. The telecom operator’s consolidated operating margin expanded 80 basis points from the previous quarter to 39.3 percent.
“In Q3FY21, we improved subscriber retention and operating performance,” said Ravinder Takkar, managing director and chief executive officer at Vodafone Idea, in an earnings statement. He also added, “We remain focused on executing our strategy, and our cost optimization plan remains on track to deliver the targeted savings.”
“It was on track to achieve its previously mentioned cost-savings target of Rs. 4,000 crores by December 2021,” said Vodafone Idea. The company said that it has already achieved 50 percent of the targeted operating efficiency in the December quarter. Crucially, the company said that its average revenue per user in the quarter improved to Rs. 121 from Rs. 119 in the previous quarter. The company also said that its gross subscriber additions improved in the quarter, while user churns reduced to 2.3 percent in the December quarter from 2.6 percent in the previous quarter.
The telecom operator’s subscriber base declined 2 million in the December quarter to 269.8 million. Vodafone Idea’s 4G subscriber base stood at 109.7 million on December 31, up 3.6 million from the previous quarter.
The company’s gross debt at the end of the December quarter was at Rs. 1.1 lakh crore. On Friday, shares of the company had ended 4.7 percent lower at Rs. 12.30 on the National Stock Exchange.