1QFY21 results of Vodafone Idea - Angel Broking

Mr. Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd

"On a consolidated basis, Vodafone Idea revenue de-grew by 9.2% QoQ to ₹10,659 cr due to decline in subscribers as well as ARPU. ARPU declined by 6% QoQ to ₹114. ARPU for the quarter was negatively impacted due to customers inability to access their regular retailers to recharge and extension in validity of minimum recharge plan during lock-downs. EBIDTA registered degrowth of 6.4% QoQ to ₹4098 cr. Although, EBIDTA margins improved by 110 bps QoQ to 38.4%. Company reported loss of ₹25,460 cr including ₹19,923 cr exceptional loss mainly attributable to AGR provision. Post this loss, net worth of the Company has turned negative and stands at ₹(19,492) cr. Revenue missed street expectation but EBIDTA was above street expectation due to improved margins. Vodafone Idea's ability to continue as a going concern is highly dependent on a positive outcome on AGR matter before the Supreme Court for the payment in installments. Considering the fact that Vodafone Idea continues to lose market share, net worth is negative and is also making losses at PAT level, we advise investors to avoid Vodafone Idea. Bharti Airtel is our preferred pick in the telecom space."

Shares of Vodafone Idea Ltd was last trading in BSE at Rs.8.83 as compared to the previous close of Rs. 8.25. The total number of shares traded during the day was 112188422 in over 146215 trades.

The stock hit an intraday high of Rs. 8.93 and intraday low of 7.64. The net turnover during the day was Rs. 954545944.

Source : Equity Bulls

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