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Chandralekha Desai made post

How do you see the outlook for Vodafone Idea after the massive losses reported in the fiscal year 2019-20?

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Mitali Bhutta answered.
1 month ago

It was a historic record loss reported by Vodafone Idea which put up a staggering Rs.73,878 crore net loss for the fiscal year 2019-20. This includes provision for the AGR dues payable by Vodafone Idea to the government idea towards AGR charges and spectrum fees. Vodafone idea needs to pay Rs.51,400 crore as per the apex court order on the subject.

Losses in the Mar-20 quarter alone widened to Rs.11,644 crore as against losses of Rs.4882 crore in the same period last fiscal year. While the DOT pegs the firm's adjusted gross revenue or AGR dues at Rs.58,254 crore up to 2016-17, Vodafone Idea has pegged much lower at Rs.46,000 crore.

Revenue from operations for the Mar-20 quarter stood at Rs.11,754 crore, leading to the full year losses spurting to a record level of Rs.73,878 crore. This is a five-fold increase in losses over FY19. For the full year, the total revenues from operations stood at Rs.44,958 crore, a growth of nearly 20% which was largely on the back of merger impact on numbers.

For now, the only certainty for Vodafone is that the next Supreme Court hearing on AGR issue is scheduled in the third week of July. Vodafone Idea, along with Bharti Airtel, has been actively engaging with the government and the DOT to work out a reduced liability and also a phased payment structure that is spread at least across the next 20 years.