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Vodafone Idea Posts Highest-ever Loss by an Indian Firm at Rs 73,878 Crore in FY20

Vodafone Idea, the nation’s third largest telecom operator, on Wednesday reported a staggering Rs 73,878 crore of web loss in fiscal ended March 2020 – the very best ever by any Indian agency – after it provisioned for Supreme Court mandated statutory dues.

The agency, which has to pay Rs 51,400 crore dues after the apex court docket ordered the non-telecom revenues to be included in calculating statutory dues, stated the legal responsibility has “cast significant doubt on the company’s ability to continue as a going concern”.

In a regulatory submitting, Vodafone Idea (VIL) reported widening of March quarter web loss to Rs 11,643.5 crore. Its losses stood at Rs 4,881.9 crore in the identical interval a 12 months in the past and Rs 6,438.eight crore in earlier October-December quarter.

The Department of Telecom (DoT) estimates the agency’s adjusted gross income (AGR) dues at Rs 58,254 crore for interval as much as FY 2016-17, however the firm put the dues at Rs 46,000 crore “after adjustment of certain computational errors and payments made in the past not considered in the DoT demand.”

Of the full dues, it has made a fee of Rs 6,854.Four crore.

The firm took successful of Rs 1,783.6 crore on account of AGR-related liabilities, and Rs 3,887 crore on account of one-time spectrum costs (OTSC), each of which have been recognised as distinctive gadgets through the quarter ended March 2019.

Revenue from operations for the just-ended quarter got here in at Rs 11,754.2 crore.

For the complete 12 months FY20, losses ballooned to Rs 73,878.1 crore. Vodafone Idea’s losses stood at Rs 14,603.9 crore in FY19.

The firm stated that the monetary outcomes for the 12 months ended March 31, 2020, aren’t similar to these reported for a similar interval of the previous 12 months (merger between Vodafone India and Idea Cellular had taken impact in August 2018).

The income from operations for full 12 months FY20 stood at Rs 44,957.5 crore. The similar was Rs 37,092.5 crore in FY19.

In a press release, the corporate stated that the income had witnessed sturdy progress of six per cent quarter-on-quarter, pushed by pay as you go tariff hike efficient December 2019.

Ravinder Takkar, MD and CEO, Vodafone Idea stated “Our focus on rapid network integration, as well as 4G coverage and capacity expansion, has further improved customer experience.”

“We thus continue to lead the league tables on 4G data download speeds across several states, metros and large cities. We have achieved our full opex merger synergy target.”

He added that the subsequent Supreme Court listening to on AGR matter is scheduled to be held within the third week of July.

“Meanwhile, we continue to actively engage with the government seeking a comprehensive relief package for the industry, which faces critical challenges,” he stated.

Gross debt (excluding lease liabilities) as on March 31, 2020, was Rs 1,15,000 crore together with deferred spectrum fee obligations as a result of authorities of Rs 87,650 crore.

“The network integration is in final stages of completion but has been impacted by the nationwide lockdown due to COVID-19. As of date, we have completed network integration in 92 per cent of total districts,” the corporate added.

Due to the continuation of nationwide lockdown, the remaining consolidation is anticipated to take longer than initially anticipated, it stated.

Its subscriber base eroded to 291 million in March quarter from 304 million in December quarter. Average income per consumer (ARPU) for This fall improved to Rs 121 versus Rs 109 in Q3FY20, pushed by the pay as you go tariff hike efficient from December 2019.

Vodafone Idea maintained it plans to monetise its 11.15 per cent stake in Indus Towers on completion of the Indus-Infratel merger.

VIL stated that’s no materials impression of the pandemic on its total efficiency, however it continues to watch the state of affairs intently.

On AGR dues, the corporate stated that it has recognised a complete estimated legal responsibility of Rs 46,000 crore.

“The total estimated liability of Rs 460,000 million stands reduced as at 31 March, 2020 to the extent of payment (Rs 68,544 million) made…,” the corporate stated in a BSE submitting.

With regard to OTSC levy, it stated that Rs 3,890 crore has been recognised as distinctive merchandise through the quarter.

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