On the strength of decreased operational and extraordinary expenditures, Vodafone Idea (Vi) lowered its net loss in the fourth quarter FY21 by 39.5 percent YoY to Rs 7,022 crore. It reported a net loss of Rs 11,643 crore in the same quarter the previous year.
On a sequential basis, however, the number expanded by 55%, as the business posted a loss of Rs 4,532 crore in Q3FY21.
On a sequential basis, the business managed to reduce subscriber losses to two million in the fourth quarter, but it trailed behind peers on key metrics including average revenue per user (ARPU). Vi has not yet completed its financing; the company stated that it is in active talks with possible investors.
Due to the termination of interconnect use charges, revenue from operations fell 18.2 percent YoY to Rs 9,607 crore from Rs 11,754 crore a year earlier. Revenues were also down 11.8 percent sequentially from Rs 10,894 crore in the December 2020 quarter.
Telecom firms used to pay a six-pence-per-minute IUC for calls made from their network to other service providers; however, the telecom sector regulator ordered that this be stopped from January 1. On a sequential and year-over-year basis, this resulted in a decline in revenue and ARPU for the firm. ARPU fell 11.5 percent to Rs 107 in the next quarter.
Because of decreased operational and extraordinary expenditures, the telecom company’s fourth-quarter results were boosted.
Operating expenses, or Opex, decreased by 29.5 percent year on year and 21.3 percent sequentially to Rs 5,199 crore.
As a consequence, Vodafone Idea recorded an Ebitda margin of 45.9%, the highest the firm has ever reported.
Meanwhile, as of March 2021, the company’s net debt was Rs 1.8 trillion, up from Rs 1.17 trillion the previous quarter, and its networth was negative Rs 38,228 crore, up from negative Rs 31,243 crore in the December 2020 quarter. The significant rise in debt is attributable to Vodafone’s recognition of AGR dues in the amount of Rs 60,000 crore as debt. In Q3, the same was not considered debt.
