Debt-stricken Vodafone Idea, a leading telecom firm, has gained assurance of financial assistance up to Rs 2,000 crore from a subsidiary of its promoter group.
The company made this announcement to the stock market on Monday.
As of June 30, 2023, Vodafone Idea’s total debt tallied up to Rs 2.11 lakh crore.
The telecom provider stated, “A promoter group entity has committed to extend direct or indirect financial support of up to Rs 2,000 crore in case of immediate payment obligations.”
Loss Deepens in Q1 Results for Vodafone Idea (Vi)
In the initial quarter of the current financial year, concluding on June 30, Vodafone Idea faced an enlarged consolidated net loss of Rs 7,840 crore.
The telecommunications company, burdened by debt, observed a widened consolidated net loss of Rs 7,840 crore for the first quarter of the present financial year, in comparison to a net loss of Rs 7,295.7 crore during the same period last year.
Revenue Growth and ARPU Increase
Vodafone Idea conveyed in its communication to the stock markets on Monday that its combined operational revenue escalated by 2.3 percent to Rs 10,655.5 crore this quarter, marking a rise from Rs 10,406.8 crore during the corresponding period in the previous fiscal year.
Vodafone Idea experienced a rise in the average revenue per subscriber (ARPU), reaching Rs 139 in the June quarter, up from Rs 128 in the corresponding quarter of the prior year.
Capital Expenditure and Debt Status
The company’s capital expenditure in the reviewed quarter stood at Rs 450 crore.
Vodafone Idea’s overall gross debt reached Rs 2,11,760 crore at the end of June, encompassing pending spectrum charge payments of Rs 1,33,740 crore and adjusted gross revenue of Rs 66,860 crore.
CEO’s Perspective
Akshay Mundra, Chief Executive Officer of Vodafone Idea, mentioned, “This quarter’s continuous growth in daily revenue, ARPU, and 4G customer base, the eighth consecutive quarter, reflects our operational strength and effective competition in the market.”
Progress on Network and 5G Plans
During the June quarter, Vodafone Idea successfully established 4G networks at approximately 1,000 sites.
However, the company’s intentions to offer 5G services remain in progress.
Vodafone Idea expressed, “We are in discussions with multiple network companies to finalize our 5G strategy.
” Rigorous testing of equipment from prominent manufacturers has been conducted on their 5G network.
