India's third largest telecom operator, Vodafone Idea (VIL ), published its Q4FY23 results on May 25. Its net loss decreased even as revenue growth slowed but still met analyst predictions in the January-March quarter.
According to a filing with the exchange on Thursday, the third-largest telecom carrier in India recorded a 1.19% fall in revenue from the prior three months to Rs 10,532 crore for the quarter that ended March 31, 2023. It contrasts with the Rs 10,590-crore analyst consensus forecast that Bloomberg tracks. The company's stock on the BSE concluded Thursday's trade 0.4% higher at Rs 6.99.
In the March quarter, the Average Revenue Per User increased to Rs 135 from Rs 124 in the year-prior period, remaining constant compared to Q3FY23. Yearly, it increased by 9.3%.
The loss increased from Rs 28,234 crore in FY22 to Rs 29,298 crore in FY23. After the merger, VIL experienced its first-ever annual increase in service income. From Rs 38,489.5 crore a year ago to Rs 42,133.9 crore this year, its revenue increased by 9.4%.
Its Total Gross Debt (excluding lease obligations and including interest accrued but not due) decreased from Rs 2,22,890 crore as of December 31, 2022, to Rs 2,09,260 crore as of March 31, 2023, as a result of the conversion of interest dues resulting from the postponement of spectrum installments and AGR dues into equity issued to the government.
The entire capital expenditure for FY23 came to Rs 33.6 billion, or Rs 5.6 billion for the quarter. But, the overall subscriber base fell from 228.6 million in the December quarter to 225.9 million in the most recent quarter. Earnings before interest, taxes, depreciation, and amortization operating profit, increased to Rs 4,210 crore from Rs 4,181 crore a quarter earlier. The operating margin increased from 39.4% a quarter earlier to 40%.
To convert its loans into equity, it has granted the government 16.13 billion equity shares with a face value of Rs 10 each at an issue price of Rs 10 per share. With this issuance, the promoter interest increased to 50% while the GoI shareholding decreased to 33%, according to a stock exchange report by VIL.
Akshaya Moondra, the CEO of Vodafone Idea, said, "We are happy to report annual revenue growth for the first time following the merger on the strength of improved performance for the last several quarters.
Lastly, Vodafone Idea shares ended the day with a slight gain of 0.43 percent ending at $6.99 per share.
— Harshita kumar
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