InvestorQ : How were the results of Vodafone Idea in the latest Sep-20 quarter?
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How were the results of Vodafone Idea in the latest Sep-20 quarter?

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4 weeks ago
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Here are some of the highlights of the Vodafone results in this particular quarter ended Sep-20.

· Vodafone Idea reported losses of Rs.7,218 crore for the September quarter. This is much lower than previous quarters but largely on the back of the fact that the company has made lower provisioning.

· Revenues for the Sep-20 quarter were absolutely flat with the company consistently losing customers and market share to Bharti and Reliance Jio on a consistent basis. Even ARPUs have not really picked up to that extent.

· The loss of customers is a lot more acute in the 4G space and that has been hitting its growth in a big way. It is currently ramping up its 4G infrastructure after the issue had virtually been pushed under the carpet in the midst of the financial crisis.

· Of comparatively on a yoy basis, Vodafone results do look encouraging. But that is more because Vodafone had posted a net loss of Rs.50,921 crore in the Sep-19 quarter after it took a big provision of Rs.25,677 crore post the AGR judgment on October 19, 2019.

· As a matter of relief, the Honourable Supreme Court has given Vodafone 10 years time to defray the AGR charges but that would still imply that it entails outflows of Rs.5,000 crore annually. That is not a small sum in the current situation.

· As a proactive measure, Vodafone has also undertaken a cost cutting plan to save Rs.4,200 crore of OPEX annually. But the real worry is loss of customers to competition and unless that is reversed, it could suffer permanent damage to market share.

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