Vodafone Idea Q4 Results 2022
Telecom company Vodafone Idea posted its quarterly results for Q4 FY22 on May 10, 2022. Vodafone Idea reported a loss of Rs 6,563 crore in the quarter under review. However, the loss was reduced by 9.2% from a loss of Rs 7,230 crore in the previous quarter. On a year on year basis, the net loss was down by 6.5% from a loss of Rs 7,022 crore in the year-ago period.
Vodafone Idea’s revenue from operations was up 5.3% as compared to the previous quarter and 6.5% year on year to Rs 10,239 crore in the quarter under review. However, the company’s expenses over the past four quarters have been more than the company’s total income, particularly due to the company’s AGR dues, spectrum dues, and other finance costs.
In Q4 FY22, the company’s total income came in at Rs 10,271 crore, up 5.3% quarter on quarter from Rs 9,751 crore in the previous quarter. However, the company’s total expenses were largely flat on a sequential basis, and up at Rs 16,819 crore from Rs 15,715 crore in the year-ago period. Depreciation and amortization expenses and finance costs account for the majority of this expense.
Vodafone Idea’s Average Revenue Per User (ARPU) came in at Rs 124 from Rs 115 in the previous quarter after the tariff hikes in November 2021.
The company’s scrip closed in the red at Rs 8.70 per share after taking a dip of 2.79% at the end of the intraday trading session on May 10, 2022, ahead of the company’s quarterly results.
Highlights
- ARPU for the Q4 FY22 up 7.5% quarter on quarter, at Rs 124 against Rs 115 in the previous quarter
- Average Daily Revenue growth of 7.7% quarter on quarter, highest quarterly growth since merger with Idea
- Continued network capacity expansion supported by spectrum refarming and upgrading network to 4G
- 4G subscriber base continued to grow, 10 lakh new customers added in Q4 FY22, 4G base now stands at 11.8 crore users
- EBITDA improved to Rs 2,120 crore, compared to Rs 1,620 crore in Q3 FY22
- Expanded digital portfolio with several new offerings across music, games, education & jobs in partnership with leading service providers to improve customer engagement
Vodafone Idea’s Liability
The total gross debt as of March 31, 2022 stands at Rs 19.78 lakh crore, comprising deferred spectrum payment obligations of Rs 1.13 lakh crore, AGR liability of Rs 65,950 crore that are due to the Government and debt from banks and financial institutions of Rs 18,070 crore. Cash & cash equivalents were at Rs 1,460 crore and net debt stood at Rs 1.96 lakh crore.
What the Management says
Ravinder Takkar, MD & CEO, Vodafone Idea Limited, said “We are pleased to announce the third consecutive quarter of revenue growth driven by tariff interventions taken in November 2021. While the overall subscriber base has been impacted primarily on account of the tariff increase, the 4G subscriber base continued to grow on the back of superior data and voice experience offered by Vi GIGAnet. We are in the process of creating differentiated digital experiences for our customers and added several new digital offerings across various genres during the quarter. We successfully completed the first tranche of fund raising in the form of preferential equity contribution of Rs. 45 billion from our promoters. We continue to actively engage with lenders and investors for further fund raising.”
Preferential allotment
On March 31, 2022, the company completed the allotment of nearly 3,379 crore equity shares of face value of Rs 10 each at an issue price of Rs 13.30 per share As a result of this preferential allotment, the aggregate shareholding of the Promoter Group in the company has increased from 72.05% to 74.99%. Post interest conversion into equity, the government shareholding is expected to be ~33% (~36% prior to preferential allotment) while the Promoters will hold ~50% on combined basis.
Other things to know about Vodafone Idea
- Vodafone Idea’s P/E ratio is at -0.65 against the industry average of -18.82
- The company’s P/B ratio is at -0.75 against the industry average of 8.11