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Vodafone Idea Sees Subscriber Base Drop to 29.1 Crores, Posts Biggest Ever Loss by an Indian Firm

Vodafone Idea Sees Subscriber Base Drop to 29.1 Crores, Posts Biggest Ever Loss by an Indian Firm

Vodafone Idea, the nation’s third biggest telecom operator, on Wednesday revealed a stunning Rs. 73,878 crores of total deficit in financial finished March 2020 – the most noteworthy ever by any Indian firm – after it provisioned for Supreme Court mandated statutory contribution.

The firm, which needs to pay Rs. 51,400 crores levy after the Supreme Court requested the non-telecom incomes to be remembered for ascertaining statutory contribution, said the risk has “give occasion to feel qualms about significant the company’s capacity to proceed as a going concern.”

Vodafone Idea Sees Subscriber Base Drop to 29.1 Crores, Posts Biggest Ever Loss by an Indian Firm

In a regulatory documenting, Vodafone Idea (VIL) revealed augmenting of March quarter total deficit to Rs. 11,643.5 crores. Its losses stood at Rs. 4,881.9 crores in a similar period a year back and Rs. 6,438.8 crores in past October-December quarter.

The Department of Telecom (DoT) evaluates the firm’s balanced gross income (AGR) levy at Rs. 58,254 crores for period up to FY 2016-17, however the company put the levy at Rs. 46,000 crores “after change of certain computational mistakes and installments made in the past not considered in the DoT demand.”

Of the total duty, it has made an installment of Rs. 6,854.4 crores.

The company took a hit of Rs. 1,783.6 crores by virtue of AGR-related liabilities, and Rs. 3,887 crores because of one-time range charges (OTSC), the two of which were perceived as excellent things during the quarter finished March 2019. Income from tasks for the simply finished quarter came in at Rs. 11,754.2 crores.

For the entire year FY20, losses swelled to Rs. 73,878.1 crores. Vodafone Idea’s losses stood at Rs. 14,603.9 crores in FY19.

The company said that the financial outcomes for the year finished March 31, 2020, are not equivalent to those detailed for a similar time of the previous year (merger between Vodafone India and Idea Cellular had produced results in August 2018).

The income from tasks for entire year FY20 stood at Rs. 44,957.5 crores. The equivalent was Rs. 37,092.5 crores in FY19.

In an announcement, the company said that the income had seen solid development of six percent quarter-on-quarter, driven by prepaid levy climb powerful December 2019.

Ravinder Takkar, MD and CEO, Vodafone Idea said “Our attention on fast system combination, just as 4G inclusion and limit expansion, has additionally improved customer experience… We in this manner keep on driving the group tables on 4G information download speeds over several states, metros and enormous urban areas. We have accomplished our full opex merger collaboration target.”

He included that the following Supreme Court hearing on AGR matter is booked to be held in the third seven day stretch of July.

“Meanwhile, we keep on effectively draw in with the administration looking for an extensive alleviation bundle for the business, which faces basic difficulties,” he said.

Net obligation (barring lease liabilities) as on March 31, 2020, was Rs. 1,15,000 crores including conceded range installment commitments because of the administration of Rs. 87,650 crores.

The system joining is in definite phases of culmination yet has been affected by the across the nation lockdown due to COVID-19. As of date, we have finished system mix in 92 percent of total areas,” the company included.

Because of the continuation of across the country lockdown, the rest of the union is required to take longer than at first expected, it said.

Its subscriber base disintegrated to 291 million in March quarter from 304 million in December quarter. Normal income per client (ARPU) for Q4 improved to Rs. 121 versus Rs. 109 in Q3FY20, driven by the prepaid duty climb powerful from December 2019.

Vodafone Idea kept up it plans to monetise its 11.15 percent stake in Indus Towers on fulfillment of the Indus-Infratel merger.

VIL said that is no material effect of the pandemic on its general performance, however it keeps on monitoring the circumstance intently.

On AGR duty, the company said that it has perceived a total evaluated risk of Rs. 46,000 crores.

“The total evaluated risk of Rs. 460,000 million stands decreased as at 31 March, 2020 to the degree of installment (Rs. 68,544 million) made…,” the company said in a BSE recording. With respect to OTSC demand, it said that Rs. 3,890 crores has been perceived as excellent thing during the quarter.

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