May 13, 2019
Vodafone Idea, the country’s largest telecom operator, on Monday reported narrowing of consolidated net loss to Rs 4,881.90 crore during the fourth quarter ended March 31, 2019 from Rs 5,004.60 crore loss in the previous quarter, helped by synergies from the merger of Aditya Birla Group’s Idea and Vodafone in August last year.
The consolidated financial result for the quarter and financial year ended March 31, 2019 are not comparable with previous year figures as merger of Vodafone India and Idea Cellular completed on August 31, 2018.
Snapping 11 quarters of declines, revenue inched up by 0.1 per cent sequentially to Rs 11,775 crore during the fourth quarter ended March 31, 2019, benefitted from introduction of minimum recharge packs and decline in operating expenses.
Kumar Mangalam Birla-led merged entity’s average revenue per user (Arpu) climbed 16.85 per cent to Rs 104 in March quarter against Rs 89 in the last quarter.
The operating expenses declined to Rs 17,599.60 crore in Q4FY19 as compared to Rs 18,226.10 crore in Q3 FY19.
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The company had posted consolidated loss after tax at Rs 14,603.90 crore during the financial year 2018-19, the company said.
Commenting on earnings, Balesh Sharma, CEO of Vodafone Idea said: “The initiatives we have taken since the merger are yielding positive results and we are well on track to deliver our synergy targets two years early. We remain focused on fortifying our position in key profitable districts by expanding coverage and capacity of our 4G network, targeting higher share of new 4G customers by offering an enhanced network experience, whilst also improving cash flows through cost transformation.”
“The oversubscription of our recent rights issue, the largest in India, is a clear testament to investors’ support for our strategy,” he added.
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During January-March quarter, the company successfully raised Rs 25,000 crore through a rights issue to existing eligible equity shareholders.
Meanwhile, Vodafone Idea shares closed trade at Rs 14.45, up 3.21 per cent, on the BSE on Monday.