Vodafone Idea Posts Rs 73,878 Crore Loss In 2019-20, Highest-Ever By An Indian Company

Vodafone Thought’s internet loss within the January-March interval stood at Rs 11,643.5 crore

New Delhi:

Vodafone Thought, the nation’s third largest telecom operator, on Wednesday reported a staggering internet lack of Rs 73,878 crore within the monetary yr ended March 31, on account of provisions for the Supreme Courtroom mandated statutory dues. That marked the very best ever internet loss reported by an Indian agency. The agency – which has to pay Rs 51,400 crore dues after the highest courtroom ordered the non-telecom revenues to be included in calculating statutory dues – mentioned the legal responsibility has solid a “vital doubt on the corporate’s capability to proceed as a going concern”.

Vodafone Thought’s internet loss widened to Rs 11,643.5 crore within the January-March interval of monetary yr 2019-20, from Rs 6,438.eight crore within the earlier quarter, and Rs 4,881.9 crore within the quarter ended March 31, 2019, the telecom main mentioned in a regulatory submitting.

The Division of Telecom (DoT) estimates the corporate’s dues associated to adjusted gross income (AGR) at Rs 58,254 crore for interval as much as monetary yr 2016-17, however the firm has pegged the dues at Rs 46,000 crore “after adjustment of sure computational errors and funds made prior to now not thought-about within the DoT demand”. Of the full dues, it has made a fee of Rs 6,854.Four crore to this point.

The corporate took a success of Rs 1,783.6 crore on account of AGR-related liabilities, and Rs 3,887 crore on account of one-time spectrum costs (OTSC), each of which have been recognised as distinctive gadgets in the course of the quarter ended March 2019.

Income from operations within the quarter ended March 31, 2020 got here in at Rs 11,754.2 crore. For the complete yr monetary yr that ended on the identical day, Vodafone Thought’s losses stood at Rs 73,878.1 crore, as in opposition to Rs 14,603.9 crore in monetary yr 2018-19.

The corporate mentioned that the monetary outcomes for the yr ended March 31, 2020 will not be comparable with the corresponding interval a yr in the past because of the merger between Vodafone India and Thought Mobile which took impact in August 2018.

The income from operations for monetary yr 2019-20 stood at Rs 44,957.5 crore, as in opposition to Rs 37,092.5 crore in 2018-19.

Vodafone Thought mentioned in a press release that its income rose 6 per cent in comparison with the earlier quarter pushed by pay as you go tariff hikes efficient December 2019.

“Our give attention to fast community integration, in addition to 4G protection and capability growth, has additional improved buyer expertise. We thus proceed to guide the league tables on 4G information obtain speeds throughout a number of states, metros and huge cities. We’ve got achieved our full opex merger synergy goal,” mentioned Ravinder Takkar, managing director and CEO, Vodafone Thought.

The following Supreme Courtroom listening to on the AGR matter is scheduled to be held within the third week of July, he added.

“In the meantime, we proceed to actively have interaction with the federal government searching for a complete aid bundle for the trade, which faces crucial challenges,” Mr Takkar mentioned.

As of March 31, 2020, the corporate’s gross debt (excluding lease liabilities) was Rs 1,15,000 crore together with deferred spectrum fee obligations of Rs 87,650 crore because of the authorities.

“The community integration is in ultimate levels of completion however has been impacted by the nationwide lockdown because of COVID-19. As of date, we have now accomplished community integration in 92 per cent of complete districts,” the corporate mentioned.

As a result of continuation of the nationwide lockdown to curb the unfold of the coronavirus pandemic, the remaining consolidation is anticipated to take longer than initially anticipated, it mentioned.

The corporate’s subscriber base eroded to 291 million within the January-March interval from 304 million within the earlier quarter.

Its common income per consumer (ARPU), a key measures of a telecom firm’s profitability, improved to Rs 121 within the January-March interval, from Rs 109 within the earlier quarter, pushed by the pay as you go tariff hike.

Vodafone Thought maintained it plans to monetise its 11.15 per cent stake in Indus Towers on completion of the Indus-Infratel merger.

The corporate mentioned there isn’t a materials impression of the pandemic on its general efficiency, but it surely continues to observe the state of affairs intently.

On the AGR matter, the corporate mentioned that it has recognised a complete estimated legal responsibility of Rs 46,000 crore.

“The full estimated legal responsibility of Rs 460,000 million stands decreased as at March 31, 2020 to the extent of fee (Rs 6,854.Four crore) made,” the corporate mentioned within the regulatory submitting.