Vodafone Idea on Tuesday paid round Rs 1,367 crore to the division of telecommunications (DoT) in direction of its licence charge and spectrum utilization cost for the January-March quarter. Operators typically pay their licence charge and SUC to the DoT on a quarterly foundation and this fee of the January-March interval was speculated to be paid between March 20-25. While different operators like Bharti Airtel and Reliance Jio had paid on time, Vodafone Idea had sought extra time from the federal government citing the disruption as a result of coronavirus pandemic however the authorities didn’t conform to make an exception for a single operator.
Operators pay 8% of their adjusted gross income as licence charge whereas SUC ranges between 3-5%.
The present fee and the dues that are earlier than the Supreme Court are completely different. While for the latter the businesses, together with Vodafone Idea, have sought the power to pay in installments unfold over some 20 years which is presently earlier than the SC, there’s been no such demand for present funds.
Vodafone Idea posted a internet lack of Rs 6,453 crore in the course of the October-December quarter on a income of Rs 11,089 crore. Last month, of its Rs 58,254 crore AGR dues, it paid Rs 6,854 crore to the federal government. This cash was drawn on the corporate’s money reserves of round Rs 12,815 crore on the finish of Q3 and a few proceeds remaining of its rights subject. Its money reserves is now estimated to have come all the way down to under Rs 3,000 crore.
Analysts at Credit Suisse have estimated narrowing of its internet loss to Rs 5,816 crore for the January-March quarter. They count on the corporate’s consolidated income to develop by 3.3% QoQ to Rs 11,457 crore and the Ebitda by 11% Q-o-Q to Rs 3,800 crore.
They imagine Vodafone Idea can be impacted by COVID-19 with lower than anticipated Arpu restoration following from the tariff hikes introduced in December 2019. However, the subscriber market share loss for the corporate within the close to time period can be diminished on account of the lockdown. CS is estimating a 2.9% QoQ decline in subscriber base and a 6.5% QoQ progress within the Arpu. The Ebitda will profit from the advance in Arpu as 70-80% of the incremental income will move by way of the Ebitda.
Survival of Vodafone Idea largely is dependent upon whether or not it is ready to get the aid by the SC to pay its AGR dues in installments unfold over some 20 years. In that case additionally it could want to boost funds by its sale of 11% in Indus Towers, which ought to deliver it round Rs 5,000 crore. Some further funds may be mopped up by monetisation of its fibre belongings, however even then it could nearly be sufficient to satisfy funding until FY22 if Arpu with tariff hikes strikes to round Rs 250. Its Arpu in Q3 was Rs 109.