Vodafone Idea shares hit 52-week low amid revenue growth and debt woes, full 5G rollout by Q4FY25

Anupama Ghosh Updated - November 22, 2024 at 01:56 PM.

VIL has set ambitious network expansion targets, aiming to achieve 4G population coverage of 1.1 billion by March 2025 and 1.2 billion by September 2025

FILE PHOTO: A man walks across the LED display board showing the logo of Vodafone-Idea at the ongoing India Mobile Congress 2022, at Pragati Maidan, in New Delhi, India, October 3, 2022. REUTERS/Anushree Fadnavis/File Photo | Photo Credit: ANUSHREE FADNAVIS

The shares of Vodafone Idea Limited (VIL) were trading at ₹6.69 down by ₹0.22 or 3.18 per cent 1.45 pm. The shares of the company hit 52-week low on the NSE today.

Vodafone Idea Limited (VIL), disclosed in the investors meeting, plans to begin 5G service deployment in Q4FY25 and has secured equipment deals worth ₹300 billion with Nokia, Ericsson, and Samsung. VIL announced its largest-ever quarterly network expansion, adding approximately 42,000 4G sites and improving capacity by 14 per cent.

VIL has set ambitious network expansion targets, aiming to achieve 4G population coverage of 1.1 billion by March 2025 and 1.2 billion by September 2025. The company has also strengthened its digital ecosystem through partnerships with PayU India for digital payments, Genesys for contact center solutions, and Infinity Labs for AI-enhanced network services.

Vodafone Idea Limited (VIL) reported a 4 per cent quarter-on-quarter revenue growth to ₹109.3 billion in Q2 FY25, while posting a net loss of ₹71.8 billion. The telecom operator’s EBITDA, including Ind AS 116, grew 8.2 per cent Q-o-Q to ₹45.5 billion with a margin of 41.6 per cent.

Despite operational improvements, VIL continues to face significant debt challenges with deferred spectrum obligations of ₹1,419.4 billion and AGR liabilities of ₹703.2 billion. The company’s bank debt decreased to ₹32.7 billion from ₹78.3 billion a year ago, while maintaining cash and bank balances of ₹136.2 billion.

The operator recorded a subscriber loss of 5.1 million due to port-outs and SIM consolidations. However, ARPU (excluding M2M) improved by 7.8 per cent Q-o-Q following recent tariff revisions.

Management indicated ongoing discussions with banks and promoters for capex funding, while continuing engagement with the government on AGR dues resolution and bank guarantee requirements.

Published on November 22, 2024 08:23

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