Shares of Vodafone Idea fell nearly 5 per cent to hit an intraday low of Rs 11.92 on the BSE after it reported December quarter earnings. Vodafone Idea on Saturday said that its net loss narrowed to Rs 4,532 crore from loss of Rs 6,438.8 crore during the same quarter last year. Its revenue from operations declined nearly 2 per cent to Rs 10,894 crore compared with Rs 11,089 crore in the year ago period. On a sequential basis, Vodafone Idea’s revenue rose 1 per cent. (Track Vodafone Idea share price here)
Vodafone Idea’s operating profit or earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter came in at Rs 4,290 crore while EBITDA margin improved to 39.3 per cent versus 38.5 per cent in the previous quarter. “EBITDA improvement was driven by higher revenue as well as incremental opex savings from our cost optimization initiatives,” Vodafone Idea said in a statement.
Vodafone Idea’s average revenue per user, a key metric of how much a telecom company earns from a subscriber came in at Rs 121 per month in December quarter compared with Rs 119 in the previous quarter.
“In Q3FY21, we improved subscriber retention and operating performance, supported by Vi GIGAnet, which remains the fastest 4G network in India, as per Ookla as well the network with highest rated voice quality as per TRAI – a testimony to our superior network. We remain focused on executing our strategy, and our cost optimization plan remains on track to deliver the targeted savings. The Board has approved funds raising to support our strategic intent and we are in active discussions with potential investors,” Ravinder Takkar, MD & CEO, Vodafone Idea Limited, said.
As of 2:40 pm, Vodafone Idea shares traded 4.15 per cent lower at Rs 12.02, underperforming the Sensex which was up 1 per cent.