Vodafone Idea’s net loss narrowed to Rs 7,218 crore in the second quarter of financial year 2021 on account of lower provisioning but flat revenue, and subscriber loss. Limited 4G conversions also continued to weigh on its performance.
In the same quarter last year, Vodafone Idea had posted a record Rs 50,921 crore net loss due to Rs 25,677-crore-plus provisioning for adjusted gross revenue dues. Exceptional items in the preceding quarter were Rs 767 crore on account of integration and merger-related costs and impairment of assets.
While rival Bharti Airtel reported highest-ever quarterly revenue due to customer additions and high data volumes, Vodafone Idea’s revenue remained flat on sequential and year-on-year basis. The telecom company reported revenue of Rs 10,791 crore in the second quarter of FY21.
Also, finance costs grew 26 per cent to Rs 4,700 crore on year-on-year. Lenders are seeking an increase in interest rate because of rating downgrades and the company said its ability to continue as going concern depends on successful negotiations with banks for refinancing of loans and guarantees.
Operationally, it was a weak quarter as Vodafone Idea’s subscriber base declined