Vodafone Idea posts highest-ever loss through an Indian company at Rs 73,878 cr in FY20

 

Vodafone Idea, the rustic’s third-largest telecom operator, on Wednesday reported a staggering Rs 73,878 crore of web loss in fiscal ended March 2020 – the perfect ever through any Indian company – after it provisioned for Supreme Court mandated statutory dues. The company, which has to pay Rs 51,400 crore dues after the apex court docket ordered the non-telecom revenues to be integrated in calculating statutory dues, mentioned 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 a widening of March quarter web loss to Rs 11,643.five crore. Its losses stood at Rs 4,881.nine crore in the similar duration a 12 months in the past and Rs 6,438.eight crore within the earlier October-December quarter.

The Department of Telecom (DoT) estimates the company’s adjusted gross earnings (AGR) dues at Rs 58,254 crore for a duration as much as FY 2016-17, however the corporate 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 cost of Rs 6,854.Four crore.

The corporate took successful of Rs 1,783.6 crore as a result of AGR-related liabilities, and Rs 3,887 crore as a result of one-time spectrum fees (OTSC), either one of which have been recognised as remarkable pieces all over the quarter ended March 2019.

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

For the entire 12 months FY20, losses ballooned to Rs 73,878.1 crore. Vodafone Idea’s losses stood at Rs 14,603.nine crore in FY19.

The corporate mentioned that the monetary effects for the 12 months ended March 31, 2020, don’t seem to be related to these reported for a similar duration of the previous 12 months (a merger between Vodafone India and Idea Cellular had taken impact in August 2018).

The earnings from operations for complete 12 months FY20 stood at Rs 44,957.five crore. The similar was once Rs 37,092.five crore in FY19.

In a remark, the corporate mentioned that the earnings had witnessed sturdy enlargement of six in step with cent quarter-on-quarter, pushed through pay as you go tariff hike efficient December 2019.

Ravinder Takkar, MD and CEO, Vodafone Idea mentioned “Our focal point on fast community integration, in addition to 4G protection and capability enlargement, has additional advanced buyer enjoy.

“We thus proceed to guide the league tables on 4G knowledge obtain speeds throughout a number of states, metros and big towns. We have accomplished our complete opex merger synergy goal.”

He added that the following Supreme Court listening to on AGR subject is scheduled to be held within the 0.33 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 mentioned.

Gross debt (except for rent liabilities) as on March 31, 2020, was once Rs 1,15,000 crore together with deferred spectrum cost duties because of the federal government of Rs 87,650 crore.

“The network integration is in the 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 national lockdown, the remainder consolidation is anticipated to take longer than first of all anticipated, it mentioned.

Its subscriber base eroded to 291 million within the March quarter from 304 million within the December quarter. The moderate earnings in step with person (ARPU) for This autumn advanced to Rs 121 as opposed to Rs 109 in Q3FY20, pushed through the pay as you go tariff hike efficient from December 2019.

Vodafone Idea maintained it plans to monetise its 11.15 in step with cent stake in Indus Towers on finishing touch of the Indus-Infratel merger.

VIL mentioned this is no subject material affect of the pandemic on its general efficiency, nevertheless it continues to watch the location carefully.

On AGR dues, the corporate mentioned 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 mentioned in a BSE submitting.

With regard to OTSC levy, it mentioned that Rs 3,890 crore has been recognised as an outstanding merchandise all over the quarter.

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