Vodafone Idea Limited (Vi), one of India's leading telecom service providers, has reported an Adjusted Gross Revenue (AGR) of Rs 78,500 crore and announced plans to expand its 4G network coverage. The company aims to increase its 4G population coverage from the current 84.4% to 90% within a couple of quarters, requiring a capital expenditure of Rs 40 billion.

Financial and Legal Developments

CEO Abhijit Kishore expressed hope for a long-term government solution to the company's financial challenges. Vodafone Idea welcomed the Supreme Court's ruling allowing the government to reconcile all dues till fiscal 2016-17. The telecom operator is actively engaged with banks and NBFCs for funding, with the government now holding a 49% stake in the company.

Vodafone Idea had sought a waiver of penalty and interest on a Rs 9,450 crore AGR demand from the Department of Telecommunications. The government became the largest shareholder after acquiring Rs 36,950 crore worth of shares in lieu of spectrum auction dues in March, adding to its earlier 33% stake acquired in 2023.

Financial Performance

The company's recent financial results show mixed performance:

• Consolidated net loss narrowed to Rs 5,524.00 crore from Rs 6,608.00 crore in the previous quarter
• Revenue from operations increased 1.6% sequentially to Rs 11,195.00 crore
• Average Revenue Per User (ARPU) rose nearly 9% year-on-year to Rs 180.00

Network Expansion and 5G Rollout

Vodafone Idea continues to focus on expanding its 4G and 5G coverage:

• 4G data capacity increased by about 38% compared to March
• 4G speeds improved by approximately 17% in the same period
• Total broadband site count reached around 527,000
• Over 1,500 new unique 4G towers added in the last quarter
• 5G services are now available in 29 cities across all 17 priority circles

Customer Base

The company's customer metrics show some positive trends:

Conclusion

Despite ongoing financial challenges, Vodafone Idea's focus on network expansion and quality improvement demonstrates its commitment to enhancing customer experience and strengthening its position in the competitive Indian telecom market. The company's ability to execute its expansion plans while managing its financial obligations will be crucial for its future growth and sustainability.

Vodafone Idea Limited (VIL), one of India's leading telecom service providers, recorded a significant block trade on the National Stock Exchange (NSE) worth Rs. 16.33 crores. The transaction involved approximately 16,155,631 shares changing hands at a price of Rs. 10.11 per share.

This block trade comes at a time when Vodafone Idea is navigating through a challenging financial landscape. According to the company's recent financial results:

Financial Performance

• Revenue for the quarter stood at Rs. 111.90 billion, showing a year-over-year growth of 2.4%.
• The company reported a Cash EBITDA (pre-IndAS 116) of Rs. 22.50 billion.
• Customer ARPU (Average Revenue Per User), excluding M2M, increased to Rs. 180, up from Rs. 166 in the same quarter of the previous year, representing an 8.7% growth.

Operational Highlights

• VIL's 4G/5G subscriber base reached 127.8 million, up from 125.9 million in the previous year.
• The company expanded its 4G network coverage to 84.4% of the population.
• Vodafone Idea has completed 5G rollout in all 17 priority circles where it holds 5G spectrum.

Debt and Liquidity

• Vodafone Idea's debt from banks reduced to Rs. 15.30 billion.
• The company held a cash and bank balance of Rs. 30.80 billion.

Abhijit Kishore, CEO of Vodafone Idea Limited, commented on the company's progress, stating, "We continue to make steady progress towards our strategic intent of delivering superior customer experience. We expanded our 4G coverage to over 84% of population and completed the 5G rollout in all 17 circles where we hold 5G spectrum."

The block trade, occurring amidst these developments, may signal investor interest in the telecom giant's ongoing efforts to strengthen its market position and financial health. However, it's important to note that block trades can be influenced by various factors and do not necessarily indicate a broader market trend.

Vodafone Idea continues to focus on expanding its 4G coverage to 90% of the population and growing its 5G footprint in areas with increasing 5G handset adoption. The company remains engaged with lenders to secure debt financing to support its broader capex plans of Rs. 500–550 billion.

As Vodafone Idea navigates its financial challenges and invests in network expansion, market observers will be keenly watching how these efforts translate into improved financial performance and market share in the highly competitive Indian telecom sector.