Voda Idea shares dip by 5% on back of poor Q3 results

NEW DELHI: Shares of dropped by 5% in the morning trading hours on Monday, on the back of the telco’s widening losses.

The third largest telco’s consolidated losses for the quarter ended December expanded to Rs 7,230.9 crore from Rs 4,532.1 crore compared to the corresponding quarter last year.

Shares were trading at Rs 11.30 down by 5.04% on BSE in the morning.

Despite the uptick in average revenue per user (ARPU) to Rs 115 from 109 in Q2, overall revenues took a dip as well when compared to the same period last year.

The revenue from operations for Q3 also declined 10.80% year-on-year to Rs 9,717 crore as against Rs 10,894 crore in the same quarter a year ago.

Tariff upticks have led to dip in subscribers for the telco which has opted for a government moratorium and offered to give about 35% to the government as equity.

Analysts have noted that the 3% sequential revenue growth during the quarter is insufficient to drive the required cash flows to meet the telecom operator's mounting interest and financing costs.