Vodafone Idea Limited is a famous telecom operator in India. Their headquarters are located in Mumbai, Maharashtra, and Gandhinagar, Gujarat. They are the third-largest mobile telecommunications networks in India and the fifth largest one in the world.
The share price of Vodafone Idea tumbled 8 percent to Rs 7.64 apiece, In the April-June quarter they reported a loss of Rs 25,467 crore. This is more than double of what the telecom company incurred in the preceding quarter. During the April-June quarter, the company provisioned Rs 19,440 crore towards it’s Adjusted Gross Revenue (AGR) dues
Records show that the current prices of the company are up 193 percent from 52-week low, while still off 40 percent from its 52-week high. The company reveals that the coronavirus-led nationwide lockdown, that impacted their first-quarter numbers.
Mr. Vishal Wagh, the Research Head of Bonanza Portfolio Ltd, said that the shares of Vodafone Idea are struggling to remain in two figures, and also the Retail interest seems to be pretty higher in this counter as compared to other institutions. The shares of Vodafone idea were trading 2.55 percent down at Rs 8.04 apiece on Bombay Stock Exchange, taking the total market capitalization to Rs 23,103.25 crore. The revenue generated from the operations came in at Rs 10,659.3 crore for the first quarter of FY2021, as against Rs 11,269.9 crore in the same period of the previous year.
While considering this loss the net worth of the company has turned negative and stands at Rs 19,492 crore. They missed their street expectation on revenue but the EBITDA was above Street expectation due to improved margins.
Mr. Keshav Lahoti the Associate Equity Analyst of Angel Broking Ltd said that the company’s ability to continue as a going concern is highly dependent on a positive outcome on Adjusted Gross Revenue matter before the Supreme Court for the payment in installments. In an exchange filing company has 19,440.5 crores in the April-June quarter towards Adjusted Gross Revenue (AGR) liabilities, in addition to estimated recognized liability of Rs 460.0 billion as on March 31, 2020.
