Vodafone Idea Q2 Results: Loss Widens To Rs 7,176 Crore
Vodafone Idea's revenue climbed 4% to Rs 10,932.3 crore in the September quarter.
Vodafone Idea Ltd.'s consolidated net loss widened in the second quarter of fiscal 2025.
The Aditya Birla Group company posted a loss of Rs 7,175.9 crore in the July–September period in comparison to Rs 6,432.1 crore in the preceding quarter ended June 30, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had a consensus estimate of Rs 6,429 crore.
VIL Q2 FY25 Earnings Highlights (Consolidated, QoQ)
Revenue up 4% to Rs 10,932.3 crore versus Rs 10,508.3 crore (Bloomberg estimate: Rs 11,243 crore).
Net loss at Rs 7,175.9 crore versus loss of Rs 6,432.1 crore (Bloomberg estimated a loss of Rs 6,429 crore).
Ebitda up 8% to Rs 4,549.9 crore versus Rs 4,204.7 crore (Estimate was Rs 4,655 crore).
Margin expands to 41.6% versus 40% (Estimate 41.4%).
Average revenue per user rose to Rs Rs 166 compared to Rs 154.
The company had seen users decline in July and August by 32.8 lakh subscribers.
VIL's average revenue per user increased by 5.6% compared to the last quarter. This increase was prompted by the recent tariff hikes undertaken by all private operators in July this year.
The company's payment obligations stood at Rs 2,12,260 crore which includes Rs 1,41,940 of deferred spectrum payments and Rs 70,320 crore of adjusted gross revenue dues.
During the quarter, VIL added about 42,000 4G sites, the largest ever addition in 4G sites in a quarter by the company.
It is crucial to note that the telco concluded a mega $3.6 billion deal for supply of network equipment over a period of three years with Nokia, Ericsson, and Samsung.
On the issue of debt raise, VIL Chief Executive Officer Akshaya Moondra said that the firm remains engaged with its lenders for tying up debt funding towards the execution of network expansion with planned capex of Rs 50,000 crore to Rs 55,000 crore over the next three years.
"The impact of recent tariff interventions can be seen in improved ARPUs and revenue for the quarter, though the full impact will be reflected over the next couple of quarters. Further tariff rationalisation is needed for the industry to fully cover its cost of capital," Moondra added.
The share price of VIL closed 3.9% lower at Rs 7.37 apiece on the BSE, compared to a 1.25% decline in the benchmark Sensex.
