Vodafone Idea Q4 Review - Liabilities Coming Up For Payment Soon: ICICI Securities

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ICICI Securities Report

Vodafone Idea Ltd.’s Q4 FY21 cash Ebitda at Rs 22 billion benefited from one-off gains in network cost of Rs 4.5 billion; adjusted cash Ebitda came in below our estimate despite cost-saving efforts.

Though the company has seen marginal improvement in 4G subscriber addition and lower total subs loss, it is too little to make any difference, in our view.

We see liabilities coming up for payment soon and the company may have cashflow mismatch. The efforts to raise funds has also not yielded any outcome yet.

Relief from government on spectrum payment, and reduction in adjusted gross revenue liability on Supreme Court accepting reconciliation are other hopes.

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