Vodafone Idea stock falls 2.5% on weak April telecom data, profit booking

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Vi shares slip in trade: Shares of telecom operator Vodafone Idea slipped as much as 2.48 per cent to hit an intraday low of Rs 16.50 per share on Thursday, June 20, 2024. 

The fall in stock came after profit booking as the stock climbed 3.20 per cent in intraday deals on Wednesday, coupled with losing 7.35 lakh subscribers in April 2024. Vodafone Idea had lost 6.84 lakh subscribers in March 2024.

According to Telecom Regulatory Authority of India (Trai), Jio led from the front, adding 26.87 lakh subscribers in April. Bharti Airtel, meanwhile, added 7.52 lakh subscribers. 

On June 19, Vodafone sold 18 per cent stake in Indus Towers for Rs 15,300 crore to repay debts. Post stake sale, Vi’s holding in Indus Towers stood at 3.1 per cent.

In April, the telecom giant raised Rs 18,000 crore through follow-on public offering (FPO).

Headquartered in Mumbai, Vodafone Idea Ltd (VI), formerly known as Idea Cellular Ltd, is a prominent telecommunications service provider in India. The company offers a wide range of services including mobile connectivity, broadband, and passive infrastructure services. VI operates across various generations of wireless technology, from 2G to 5G, providing high-speed internet access. Additionally, it delivers entertainment options such as IVR-based content, live sports updates, WAP-based games, live TV, movies, and voice and SMS-based services such as caller tunes, expert advice, and subscriptions. VI caters to diverse sectors including enterprise, digital services, content provision, and IoT solutions, serving customers across India, including public sector entities, small and medium enterprises, and startups.

Financial performance

Vi reported a net loss of Rs 7,674 crore in the March quarter of financial year 2024 (Q4FY24), from a loss of Rs 6,418.9 crore in the same period last year (Q4FY23). 

However, revenue from operations saw a slight increase to Rs 10,606 crore from Rs 10,531 crore year-over-year (Y-o-Y).

During the quarter, Vi achieved its highest post-merger quarterly Ebitda of Rs 2,180 crore, marking a 5.4 per cent year-over-year increase. The Ebitda margin stood at 40.9 per cent, compared to 40 per cent in the previous year.

The company's average revenue per user (ARPU) grew marginally to Rs 146, up from Rs 145 in the previous quarter (Q3FY24) and Rs 135 in the corresponding quarter last fiscal The increase in ARPU came on the back of adjustments in entry-level plans and upgrades by subscribers.

At 11:49 AM, shares of Vodafone Idea were trading  1.36 per cent lower at Rs 16.69. In comparison, BSE Sensex was trading 0.03 per cent higher at 77,360.07 levels.