Telecom major Vodafone Idea’s consolidated net loss widened to Rs 7,600 crore in the July-September quarter from Rs 7,300 crore in the previous quarter.
After Jio and Airtel, Vodafone Idea is the private telecom operator with the largest number of customers in India. But the company is in heavy losses. Its price per share is less than 10 rupees. In this case, Vodafone Idea has released its September quarter results. Vodafone Idea’s revenue rose by around 2% to Rs 10,615 crore in the September quarter. Revenue per user rose to Rs 131 from Rs 128 in the June quarter. The company’s net worth is in the negative at Rs 76,416 crore. That means more debt than assets.
Capital expenditure rose to Rs 1,200 crore from Rs 840 crore in the first quarter. The number of subscribers declined to 23.4 crore from 24.4 crore in the June quarter. As on September 30, Vodafone Idea’s total debt stood at Rs. 2.2 lakh crore. In this deferred spectrum charge of Rs. 1.4 lakh crore. The arrears to the telecom sector are Rs 68,600 crore. The company’s cash reserves at the end of September stood at Rs 190 crore.
In this case, the government is going to take 33% interest on Vodafone’s spectrum arrears of Rs 16,000 crore. The government wants Vodafone to pay more capital to boost the share price earlier. As per the provisions of the Companies Act, the value of the shares should be transferred above Rs.10. Vodafone Idea shares have been below Rs 10 since April. However, the company said there is no provision preventing the government from acquiring Vodafone Idea shares.
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