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Videocon Telecom plans to invest around ₹300–350 crore this year towards network expansion, including setting up of new mobile towers and other capital expenditure as well as standalone stores.
“Our aim is to look at incremental customer addition. We are also planning to take our data contribution to 15 per cent of gross revenues by end of FY16,” Arvind Bali, Director and CEO told BusinessLine .
The telecom company will also look to invest close to ₹1,200 crore over a 3-year period for 4G services.
This apart, Videocon will also look to focus on non-spectrum businesses – that include providing services such as bulk messaging solutions, virtual mobile number solutions, virtual PBX, audio video conferencing and fibre-to-home services.
Although investments here are still to be finalised, the company has already rolled out such services across some States.
Looks to break evenVideocon is looking to break even – turn EBITDA positive – across three of its existing circles — Madhya Pradesh (including Chhattisgarh), Haryana and Gujarat — by December next year.
EBITDA refers to earnings before interest, tax, depreciation and amortisation.
According to Bali, it is planning to break even in Madhya Pradesh (& Chhattisgarh) by June this year, in Haryana and Gujarat by March and December, respectively. The Punjab circle broke even in March (FY-15).
“We plan to report an EBITDA of ₹125 crore this year in Punjab, as against ₹80 crore in the year-ago period,” Bali said.
The telecom company, which had lost licences post the 2012 Supreme Court ruling, has spectrum for seven circles.
Apart from 10 million customers, it has across the four circles. Videocon has also rolled out services in three new areas – Uttar Pradesh (East), Uttar Pradesh (West) and Bihar this fiscal. It claims to have a subscriber base of 3.5 million in these three circles.
Revenue growthThe Mumbai-headquartered company reported a turnover of ₹1,974 crore for FY-15. Revenues are mostly categorised under the GSM, wireline and carrier business heads.
According to Bali, the company is targeting to clock a turnover of ₹3,000 crore this fiscal.
Videocon for FY-16 is expecting a near 44 per cent rise in GSM revenues to ₹1,132 crore (₹781 crore), almost 40 per cent increase in wireline business to ₹341 crore (₹244 crore) and a 59 per cent increase in the carrier business to ₹1,512 crore (₹949 crore).
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