NEW DELHI: Vodafone Idea Limited, India's third-largest telecom operator, reported a consolidated net loss of Rs 6,432 crore for the first quarter of the financial year 2024-2025, down from Rs 7,840 crore in the same period last year. Revenue from operations declined by 1.3% to Rs 10,508.3 crore, compared to Rs 10,655.5 crore a year earlier. However, the company improved its average revenue per user (ARPU) to Rs 146, up from Rs 139 a year ago. EBITDA on a reported basis was Rs 4,200 crore and capital expenditure (capex) for the quarter was Rs 760 crore.
“Post the recent equity raise, we are in the process of expanding our 4G coverage and capacity as well as launch of 5G services. Some capex has already been ordered and is under execution on the basis of which we expect around 15% increase in our data capacity and an increase in 4G population coverage by around 16 million by the end of September 2024,” said Akshaya Moondra, CEO of Vodafone Idea Limited.
The company's 4G subscriber base grew for the twelfth consecutive quarter, reaching 126.7 million at the end of Q1FY25, up from 122.9 million in Q1FY24. This represents an addition of 3.8 million 4G subscribers over the past year. The total subscriber base stood at 210.1 million, largely due to changes in entry-level plans and subscriber upgrades.
Regarding its equity funding, Vodafone Idea raised approximately Rs 24,000 crore in this calendar year, including Rs 18,000 crore through a follow-on public offering (FPO) in April 2024, approximately Rs 2,080 crore via a preferential issuance to ABG (promoter) entity in May 2024, about Rs 2,460 crore through a preferential issuance to Nokia and Ericsson in July 2024, and Rs 1,600 crore from the conversion of optionally convertible debentures (OCDs) between March and July 2024.
"This equity funding supports our capex rollout for building a high-quality 4G and 5G network to contribute to India’s digital transformation," said Moondra.
Post-equity issuance, the promoters' shareholding stands at 37.2%, while government shareholding is at 23.1%.
“Our current Capex needs are being met out of equity funds. We are engaged with our lenders for tying up debt funding towards the execution of our network expansion with a planned capex of Rs 50000-55000 crore over the next three years,” said Moondra.
On recent tariff interventions, he noted that they are a positive step toward improving returns on investment and cash generation to support large investment requirements. However, further tariff rationalization is necessary for the industry to fully cover its cost of capital.
As of June 30, 2024, Vodafone Idea's total debt from banks and financial institutions stood at Rs 4,650 crore, with optionally convertible debentures at Rs 160 crore. Debt from banks and financial institutions decreased by Rs 4,550 crore from Rs 9,200 crore in Q1FY24. The cash and bank balance was Rs 18,150 crore. The company's payment obligations to the government were Rs 2,09,520 crore, including deferred spectrum payments of Rs 1,39,200 crore and AGR liabilities of Rs 70,320 crore.