Telecom operator Vodafone Idea reported a consolidated net loss of ₹6,432 crore for the first quarter ended June 30 compared with a loss of ₹7,840 crore in the same period last year.
Despite adding 4G subscribers, the company’s financial health remains precarious. Revenue from operations was down 1.3 per cent at ₹10,508.3 crore against ₹10,655.5 crore in the June quarter of 2023.
The ARPU was ₹146 in the quarter, up 4.5 per cent YoY from ₹139, primarily due to a change in the entry-level plan and subscriber upgrades.
The 4G subscriber base continued to grow for the twelfth successive quarter. It increased to 126.7 million from 122.9 million in Q1FY24, and the total subscriber base stood at 210.1 million.
Vodafone Idea CEO Akshaya Moondra said the company plans to invest ₹50,000-55,000 crore over the next three years to expand its 4G network and launch 5G services.
“We are engaged with our lenders for debt funding to support this capex,” Moondra said. “While the recent tariff hike is a step in the right direction, the industry needs further rationalisation.”
The telecom operator reported its total debt from banks and financial institutions stood at ₹465 crore, down from ₹920 crore a year earlier.
However, the company’s overall debt burden remains significant, with payment obligations to the government totaling ₹20,952 crore.
This includes deferred spectrum payment obligations of ₹13,920 crore and adjusted gross revenue (AGR) liability of ₹7,032 crore. The cash and bank balance stood at ₹18,150 crore as of June 30, 2024.
