NEW DELHI: Telecom operator Vodafone Idea on Thursday posted a massive Rs 25,460 crore loss for the first quarter ended June 2020 due to provisions for statutory dues. The company had reported a loss of Rs 4,874 crore in the same period last year.
In a regulatory filing, the debt-laden telecom company said it recognised an additional charge of Rs 19,440.5 crore in June quarter towards AGR (adjusted gross revenue) liabilities.
The company's revenue from operations also declined 5.4 per cent to Rs 10,659 crore in Q1 from Rs 11,269 posted in the same quarter last fiscal. In terms of quarter-on-quarter, revenue declined 9.3 per cent on account of large scale lockdown and disruption of economic activities.
Commenting on the results, Ravinder Takkar, managing director and CEO of Vodafone Idea said: "Q1FY21 was a challenging quarter as availability of recharges due to store closure and ability of customers to recharge on account of economic slowdown were impacted."
"We continue to actively engage with the government seeking a comprehensive relief package for the industry, which faces critical challenges,” he added.
The company said that the first quarter numbers were impacted by the nationwide lockdown due to coronavirus.
Meanwhile, subscriber churn reduced to an all-time low of 2 per cent (3.3 per cent in Q4FY20), as net disconnections were lower during the quarter. However, the gross additions were severely impacted by closure of retail stores during the nationwide lockdown resulting in subscriber base decline to 279.8 million in Q1FY21 from 291.1 million in Q4FY20. ARPU for Q1FY21 was Rs 114 as compared to Rs 121 in Q4FY20.
"The services to our customers continued without any material disruption during the lockdown as our teams across
the country worked tirelessly to ensure uninterrupted connectivity. However, the customer’s ability to recharge,
availability of physical recharge, acquisition of new customers as well as physical network rollout were significantly
impacted during the quarter," the company said.
Shares of Vodafone Idea closed 0.72 per cent lower at Rs 8.25 on the BSE, while it settled flat at Rs 8.30 on the NSE.
In a regulatory filing, the debt-laden telecom company said it recognised an additional charge of Rs 19,440.5 crore in June quarter towards AGR (adjusted gross revenue) liabilities.
The company's revenue from operations also declined 5.4 per cent to Rs 10,659 crore in Q1 from Rs 11,269 posted in the same quarter last fiscal. In terms of quarter-on-quarter, revenue declined 9.3 per cent on account of large scale lockdown and disruption of economic activities.
Commenting on the results, Ravinder Takkar, managing director and CEO of Vodafone Idea said: "Q1FY21 was a challenging quarter as availability of recharges due to store closure and ability of customers to recharge on account of economic slowdown were impacted."
"We continue to actively engage with the government seeking a comprehensive relief package for the industry, which faces critical challenges,” he added.
The company said that the first quarter numbers were impacted by the nationwide lockdown due to coronavirus.
Meanwhile, subscriber churn reduced to an all-time low of 2 per cent (3.3 per cent in Q4FY20), as net disconnections were lower during the quarter. However, the gross additions were severely impacted by closure of retail stores during the nationwide lockdown resulting in subscriber base decline to 279.8 million in Q1FY21 from 291.1 million in Q4FY20. ARPU for Q1FY21 was Rs 114 as compared to Rs 121 in Q4FY20.
"The services to our customers continued without any material disruption during the lockdown as our teams across
the country worked tirelessly to ensure uninterrupted connectivity. However, the customer’s ability to recharge,
availability of physical recharge, acquisition of new customers as well as physical network rollout were significantly
impacted during the quarter," the company said.
Shares of Vodafone Idea closed 0.72 per cent lower at Rs 8.25 on the BSE, while it settled flat at Rs 8.30 on the NSE.
Download
The Times of India News App for Latest Business News
more from times of india business
Coronavirus outbreak
Business News
LATEST VIDEOS
More from TOI
Navbharat Times
Featured Today in Travel
Quick Links
ELSS Mutual Funds BenefitsIncome Tax Refund statusWhat is AssochamITR Filing Last DateHome Loan EMI TipsHome Loan Repayment TipsPradhan Mantri Awas YojanaTop UP Loan FeaturesIncrease Home Loan EligibilityHome Loan on PFTax Saving Fixed DepositLink Aadhaar with ITRAtal Pension YojanaNita AmbaniIndian EconomyRBIAadhaar CardSBIReliance CommunicationsMukesh AmbaniIndian Bank Ifsc codeIDBI Ifsc codeIndusind ifsc codeYes Bank Ifsc CodeVijay Bank Ifsc codeSyndicate bank Ifsc CodePNB Ifsc codeOBC Ifsc codeKarur vysya bank ifscIOB Ifsc codeICICI Ifsc codeHDFC Bank ifsc codeCanara Bank Ifsc codeBank of baroda ifscBank of America IFSC CodeBOM IFSC CodeAndhra Bank IFSC CodeAxis Bank Ifsc CodeSBI IFSC CodeGST
Get the app