The company's net loss widened year-on-year in Q1 June 2020 due to provisions for statutory dues.
The stock was currently up 0.48% to Rs 8.29. It slumped 7.39% to hit the day's low of Rs 7.64 in early trade. It bounced back 1.70% in mid-morning trade to hit the day's high of Rs 8.39.The telco reported a consolidated net loss of Rs 25,460 crore in Q1 FY21, higher than net loss of Rs 4,873.90 crore in Q1 FY20. Gross revenue in Q1 June 2020 stood at Rs 10,659.30 crore, down by 5.4% from Rs 11,269.90 crore in Q1 June 2019.
Average revenue per user (ARPU) blended rose 5.6% to Rs 114 in Q1 June 2020 from Rs 108 in Q1 June 2019. Sequentially, however, ARPU declined 5.8% from Rs 121 in Q4 March 2020.
The company's total data subscribers decreased 5.3% to 13.57 crore customers in Q1 June 2020 from 14.33 crore customers in Q1 June 2019.
The teleco recorded an exceptional expense of Rs 19,923.20 crore during the first quarter. Of the total sum, Rs 19,440.50 crore is for license fees and SUC (spectrum usage charges) on AGR (adjusted gross revenues) and Rs 123 crore is for one-time spectrum charge (including interest).
Vodafone Idea's independent auditor's review report highlighted the company's material uncertainty on going concern.
"Owing to its financial performance and financial condition, the company has breached its debt covenants as at 31 March 2020 for which it is in discussions with various lenders. This has impacted the company's ability to generate the cash flow that it needs to settle/ refinance its liabilities and guarantees as they fall due, resulting in material uncertainty that casts significant doubt on the company's ability to make the payments mentioned therein and continue as a going concern.
The said assumption of going concern is dependent upon positive outcome of Company's and DoT's application with respect to deferred payment of its AGR liability, waiver of debt covenant breaches and its ability to generate/arrange the cash flow that it needs to settle or refinance its liabilities and guarantees as they fall due. Our conclusion is not modified in respect of this matter," the auditor said in its report.
Vodafone Idea operates as a telecom service provider. The company offers 2G, 3G, and 4G mobile services, as well as mobile payments, advanced enterprise offerings, and entertainment.
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