In two weeks prior to the Q3 results, Vodafone Idea’s stock had underperformed the market by falling 24 per cent, as compared to a marginal 0.18 per cent rise in the S&P BSE Sensex. It hit an all-time low of Rs 2.61 on November 15, 2019 on the BSE.
Vodafone Idea posted revenues of Rs 11,089 crore during the quarter under review, down 6 per cent over the year-ago quarter, and this was in line with analyst estimates.
However, on a sequential basis, the company posted a growth rate of 2.3 per cent. While the price hike has not so far been reflected in the performance, the gains on a sequential basis were led by 4G additions and improvement in average revenue per user (ARPU). While 4G addition growth was 9.4 per cent, ARPU growth was 1.8 per cent. On a YoY basis, ARPUs were up 22 per cent.
In Q3FY20, the company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) margins (excluding Ind AS 116 impact) stood at 11.6 per cent vs 10.2 per cent in Q2FY20.
Vodafone Idea said the company’s ability to continue as going concern is dependent on positive outcome of the application for modification of the Supplementary Order before the Hon’ble Supreme Court and subsequent agreement with department of telecommunications (DoT) for the payment in installments after some moratorium and other reliefs.
Meanwhile, the Supreme Court today will hear the modification applications filed by Vodafone Idea, Bharti Airtel and Tata Teleservices on the time schedule to make payments of over Rs 1 trillion that they owe to DoT as adjusted gross revenues (AGR). READ MORE
At 10:29 am, Vodafone Idea was trading 12 per cent higher at Rs 5.02 on the BSE, as compared to 0.23 per cent rise in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 293 million shares changing hands on the counter on the NSE and BSE so far.
First Published: Fri, February 14 2020. 10:34 IST