Comments
Target: ₹11
CMP: ₹15.79
Vodafone Idea reported mixed performance for the quarter. It reported revenue of ₹10,510 crore (down 0.9 per cent q-o-q, down 1.4 per cent y-o-y). The sequential decline in revenue was due to 2.5 million decline in subscriber base to 210.1 million; while ARPU was flat sequentially at ₹146.
The 4G addition was muted at 0.4 million q-o-q to 126.7 million. Average data usage was 15.6GB/month vs 15.4GB/month in Q4FY24. EBITDA margin was down 86 bps q-o-q to 40 per cent, led by higher network operating expenses during the quarter (up 1.2 per cent q-o-q). Net loss was down sequentially to ₹6,430 crore vs ₹7,670 crore in Q4FY24 on account of lower depreciation and interest expense.
Capex for the quarter was at ₹760 crore vs ₹550 crore in Q4FY24. Net debt was marginally down to ₹1,96,200 crore vs ₹2,07,400 crore, on account of fundraise during the quarter. After the successful FPO, it is in discussion with banks for debt fund raise of ₹25,000 crore. It has planned capex of ₹50,000-55,000 over next three years to strengthen its 4G network and launch 5G network across key sites.
It is expected that the customer churn should reduce significantly as a result of this planned capex programme. We have revised down our FY25/FY26 EBITDA by (3.9 per cent)/(1.4 per cent).
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.