AGR impact: Vodafone Idea posts Q2 loss of `50,921 crore
This is the highest ever quarterly loss posted by any Indian company in recent memory
New Delhi: Hit hard by the unpaid statutory dues, telecom operator Vodafone Idea on Thursday posted a colossal Rs 50,921 crore loss for the second quarter ended September 30, and said it is in the process of filing a review petition on the adjusted gross revenue matter.
This is the highest ever quarterly loss posted by any Indian company in recent memory.
Vodafone Idea said its ability to continue as going concern is dependent on obtaining relief from the government and positive outcome of the proposed legal remedy.
The SC order on Adjusted Gross Revenue (AGR) matter "has significant financial implications for the industry", VIL said in a statement.
Its total loss stood at Rs 50,921 crore in September quarter, against Rs 4,874 crore loss in the year-ago period. Its revenue rose 42 per cent to Rs 11,146.4 crore during the second quarter this year.
The company has estimated liability of Rs 44,150 crore post the apex court order, and made provision of Rs 25,680 crore in the second quarter this fiscal.
Airtel, Vodafone Idea and other telecom operators have to pay the government a whopping Rs 1.4 lakh crore following the recent Supreme Court order that has sent shock waves through the industry which is already grappling with losses and billions of dollars in debt.
The Supreme Court, last month, upheld government's position on including revenue from non-telecommunication businesses in calculating the annual AGR of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer.
As per latest estimates by the telecom department, Bharti Airtel faces a liability of around Rs 62,187 crore (including share of Tata Group of companies and Telenor India), while Vodafone Idea may have to pay about Rs 54,184 crore. The remaining liability is with state-owned BSNL/MTNL and some of the shut/bankrupt telecom companies.
Ravinder Takkar, MD and CEO of Vodafone India said they are in active discussions with the government seeking financial relief following the Supreme Court ruling.
"At the same time, we remain highly focused on rapid network integrating and 4G coverage and capacity expansion in our key markets," Takkar said in a release.
Gross debt as of September 30, stood at Rs 1,17,300 crore, including deferred spectrum payment obligations due to the government of Rs 89,170 crore, but excluding lease liabilities. Cash and cash equivalents were Rs 15,390 crore and net debt Rs 1,01,910 crore against Rs 99,260 crore in Q1FY20.
"It is to be noted that our ability to continue as a going concern is dependent on obtaining the reliefs from the government as discussed above and positive outcome of the proposed legal remedy," the company said.
In 100 bail orders: 'Videos' used for arrest in 44; 32 of these failed...
22 Feb 2021 7:11 PM GMTDelhi Police say 1,753 held but courts heard over 4,347 bail pleas
21 Feb 2021 8:26 PM GMT755 FIRs and 342 chargesheets against 1,553 people later – not a...
21 Feb 2021 7:48 PM GMTOf courts' bugbears, most common 'doubtful' police, public witness...
23 Feb 2021 7:29 PM GMTA Delhi Police-sized roadblock in victims' path to justice — clubbing...
25 Feb 2021 7:39 PM GMT
CWG: Shuttlers, paddlers dazzle on last day
8 Aug 2022 8:15 PM GMTMumbai court remands Sanjay Raut to 14-day judicial custody
8 Aug 2022 7:45 PM GMTCWG: Fast-rising boxer Sagar Ahlawat wins silver on international...
8 Aug 2022 7:45 PM GMTCWG: India settle for silver in men's hockey, lose 0-7 to Australia in...
8 Aug 2022 7:44 PM GMTVirat Kohli, KL Rahul back in India squad for Asia Cup
8 Aug 2022 7:44 PM GMT