CHENNAI : Cash-strapped telecom major Vodafone Idea Ltd (VIL) has recorded a larger consolidated net loss in the first quarter of this financial year than during the preceding quarter, primarily due to a decline in total revenue from operations and higher finance costs and network expenses. Filings with the stock exchanges also show that the company’s total debt has widened and that its net worth has dipped into the negative zone.
In Q1FY22, VIL’s consolidated net loss stood at Rs 7,319.1 crore against Rs 7,228.2 crore in Q4FY21. The company’s net loss had stood at a massive Rs 25,460 crore in the corresponding period of last year, however, due to large provisions made towards AGR liabilities.
The shrinking of revenues from the previous quarter is likely both due to the loss in the company’s subscriber base over the period and the impact of the second wave. Exchange filings showed that revenue from operations during the quarter stood at Rs 9,152.3 crore, compared to Rs 9,647.8 crore in Q4FY21 and Rs 10,659.3 crore in the corresponding period of last year.VIL’s expenses also grew quarter-on-quarter, rising from Rs 15,715 crore in Q4FY21 to Rs 16,683 crore; this rise was driven mainly by higher finance costs and network and outsourcing expenses.
The notes attached to the financial results say that the company’s total debt stands at Rs 1.91 lakh crore at the end of June 2021, higher than Rs 1.8 lakh crore at the end of March 2021. It’s net worth has also dipped further into the red at a negative Rs 44,541 crore.