Analysts expect Vodafone Idea's estimated Adjusted Gross Revenue (AGR) dues of over Rs 44,000 crore to rise steeply if the Department of Telecommunications (DoT) uses a different method to calculate it.
In an analyst call on Friday, ICICI securities indicated that it had “estimated its adjusted gross revenue (AGR) liability at Rs 44,200 crore (including penalty and interest) through differential interest rates of 18% and 12.5% (both compounded annually) and (that) if it’s done any other way, the AGR liability would increase significantly," the Economic Times reported.
Also, the brokerage said the company reported that the estimated AGR principal of Rs 11,100 crore is based on the demand notices received from the DoT. However, the figures for the last 2-3 years were the company's estimates. Hence the due amount may rise further if the DoT's method of calculating the AGR varies.
After the Supreme Court ruled in favour of the DoT on October 24, Vodafone Idea recorded a huge loss of Rs 50,921 crore for the September quarter and had internally marked its AGR liability at Rs 44,200 crore towards licence fees, spectrum usage charges, interest and penalties that need to be paid within three months.