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Vodafone Idea soars about 145% in four days

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Vodafone Idea soared 19.93% to Rs 7.22, extending recent steep gains on strong buying support.

Shares of Vodafone Idea rallied 144.74% in the past four trading sessions to its current market price of Rs 7.22, from its recent closing of low of Rs 2.95 on Thursday, 14 November 2019.

On 18 November 2019, Vodafone Idea said it will increase tariffs effective 1 December 2019.

Meanwhile, as per Telecom Regulatory Authority of India (TRAI)'s data, Vodafone Idea lost 25.76 lakh users in September to take its total user base to 37.24 crore.

On consolidated basis, Vodafone Idea reported a net loss of Rs 50,921.9 crore in Q2 September 2019 as against a net loss of Rs 4973 crore in Q2 September 2018. Net sales grew 41.8% to Rs 10840.20 crore on a YoY basis.

The Supreme Court (SC) judgment on 24 October on the Adjusted Gross Revenue (AGR) significantly impacted the financial stability of the company. SC provided the company a 90 days time to pay the amount and report compliance.

Consequent to the SC judgement, the company accounted for the estimated liability of Rs 27,610 crore related to license fee and Rs 16,540 crore related to spectrum usage charges up to 30 September 2019 including the interest, penalty and interest thereon of Rs 33,010 crore.

Gross debt as of 30 September 2019 was Rs 1,17,300 crore, including deferred spectrum payment obligations due to the government of Rs 89,170 crore, but excluding lease liabilities. Cash & cash equivalents were Rs 15,390 crore and net debt Rs 1,01,910 crore (vs Rs 99,260 crore in Q1FY20).

Finance minister Nirmala Sitharaman on Friday, 15 November 2019, indicated that the government intends to address the concerns of telecom companies.

"I want no company to shut operations. I want everyone to be up and running. We want the economy to have good number of companies in business and flourish in their business. Not just telecom sector, my wish is all companies in all sector(s) be able to do business, service their market customer and survive. So with that approach, the finance ministry has always been talking and in telecom too that's the approach we have taken," Sitharaman told the media.

FM also said that the Government is looking for ways to support the debt laden telecom sector.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 20 2019. 14:59 IST
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