Why Vodafone Idea Shares Are Jumping Today

Vodafone Idea’s share price was up on Friday morning breaking the four consecutive session losing streak.

What Happened: The Telecom major reported its financial results for the quarter ending in September on Thursday evening. The debt-ridden company’s net loss widened to ₹8,737.9 crore as compared to ₹7,595.5 crore in the same quarter of the previous year.

In the September quarter, the company’s revenue from operations recorded a 0.95% increase, reaching ₹10,716.3 crore compared to ₹10,614.6 crore in the corresponding quarter. The company attributed this growth to a more favourable subscriber mix and an increase in 4G subscribers.

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The telco’s EBITDA came in at ₹4,282.8 crore with an EBITDA margin of 40%. The blended average revenue per user (ARPU) per month improved on a quarterly basis, moving from ₹139 to ₹142. On a yearly basis, it increased from Rs 131.

The company’s total gross debt (excluding lease liabilities and including interest accrued but not due) as of September 30, 2023, amounted to ₹2.12 lakh crore. This debt includes deferred spectrum payment obligations of ₹1.35 lakh crore and AGR (Adjusted Gross Revenue) liability of ₹68,180 crore that are owed to the government.

Additionally, there is debt from banks and financial institutions totalling ₹7,860 crore and optionally convertible debentures amounting to ₹1,610 crore. The net debt, after accounting for reductions, stood at ₹2.12 lakh crore, with a significant reduction in debt from banks and financial institutions over the past year.

Price Action: Vodafone Idea’s share price was down % to trade at ₹ at open on Friday.

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