From Jan 2021 to Sept 2021, Vodafone Idea posted net loss of ₹21,474 crore – that’s nearly ₹80 crore every day for nine months straight
Vodafone Idea reported a consolidated net loss of Rs 7,132.3 crore for the quarter ended September as against a net loss of Rs 7,319 crore in the previous quarter. Its gross debt at 30 Sept 2021 stood at Rs. 1.9 lakh crore of which Rs. 1.1 lakh crore was deferred spectrum fees payable to the government.
Kumar Mangalam Birla also stepped down as the non-executive director and non-executive chairman of Vodafone Idea(Vi). Birla Group Chief Financial Officer Sushil Agarwal is now additional director on the Vi board
However, now the government is also helping Vodafone Idea to survive. All non-telecom revenues are now excluded from the AGR. The government has also given relief on interest, penalty, interest on penalty to telecom companies. Vodafone Idea also lost 2.4 million subscribers in the previous 3 months. However overall, its subscriber churn has slowed down significantly when compared to the previous quarter when it lost over ten million users.
Vodafone Idea has joined hands with 2 Indian startups Vizzbee Robotics Solution and Tweek Labs for 5G based solutions.
Debt-ridden telecommunication operator Vodafone Idea is evaluating the option of converting interest dues arising out of the delay of statutory payments into equity. Government has given the choice to defer all their dues payment for spectrum and Adjusted Gross Revenue (AGR) by four years to provide debt-ridden telecom companies an opportunity to improve their cash flows and invest in business.
The Vodafone Idea Limited (VIL) company may get fresh loans from India’s largest lender State Bank of India (SBI) after government’s relief measures.
“For the AGR dues, the company is in discussion with the DoT (Department of Telecom) to determine the final amount in line with the Supreme Court judgement. Further, there is an option to convert such deferment into equity. The company will take this decision by the deadline of January 12, 2022.
The government might hold something between 30-70 percent in Vodafone Idea (VIL) based on an assumed share price of Rs ten, say analysts, thanks to an equity option offered by the government for converting the company’s dues after a four year moratorium.
