NEW DELHI: Cash strapped Vodafone Idea’s net loss narrowed sequentially to Rs 7,132 crore compared to loss of Rs 7,319 crore in the preceding April-June quarter.
The telco, hit hard by Supreme Court’s final verdict on AGR dues and fierce competition in the sector, had reported a loss of Rs 7,218 crore in the same quarter last year.
The company’s total consolidated income dipped 12% year on year but improved 2.8% quarter-on-quarter to Rs 9,434 crore in Q2FY22.
Vodafone Idea’s average revenue per user (ARPU) last quarter witnessed 5.3% increase QoQ to Rs 109 in Q2FY22. Airtel and Reliance Jio’s ARPU were much higher during the same quarter at Rs 153 and Rs 143.6, respectively.
“This quarter, we had taken certain pricing initiatives to improve ARPU, in line with our stated strategy. We increased the entry level prepaid pricing plan from Rs 49 to Rs 79, in a phased manner, as well as increased the tariffs in some postpaid plans,” said Vodafone Idea.
Vodafone Idea’s total gross debt (excluding lease liabilities and including interest accrued but not due) as of September 30, 2021 stands at Rs 1.95 lakh crore, comprising deferred spectrum payment obligations of Rs 1. 08 lakh crore,
AGR liability of Rs 63.4 thousand crore that are due to the Government and debt from banks and financial institutions of Rs 22.7 thousand crore.
Auditors noted that telco’s ability to continue is dependent on raising additional funds as required, either through successful negotiations with its lenders or through increased cash flow from operations. If reports are to be believed, the company is in talks with the country’s largest lender- State Bank of India- for fresh loans.