Vodafone Idea posts Rs 7,166 crore loss, plans Rs 20,000 crore fundraise
Vodafone Idea's board has approved raising up to ₹20,000 crore despite a widened net loss of ₹7,166 crore and continued subscriber losses. The company aims to fund its 4G and 5G expansion to curb user churn, while auditors caution about its ability to meet liabilities. Despite challenges, Vi reports improved ARPU and reduced subscriber loss pace.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
The board of directors of Vodafone Idea on Friday approved raising up to `20,000 crore more even as its net loss for the March quarter widened sequentially to Rs 7,166 crore from Rs 6,609 crore and it continued to lose subscribers.Raising fresh funds will be critical to the telco's 4G and 5G expansion as it tries to stop user losses and turn around its business. The company said it would evaluate raising money by way of equity or debt or any other convertible instruments in one or more tranches.The JV of UK's Vodafone Group Plc and India's Aditya Birla Group was unable to arrest subscriber churn even as it commenced pan-India 5G rollouts this quarter covering major markets like Mumbai and Delhi. In December, subscriber base had fallen below the 200 million mark for the first time since its merger in 2019.In March, it further declined to 198.2 million. SR Batliboy and Associates, the auditors of Vi, cautioned that the operator's financial performance has impacted its ability to generate cash flows that it needs to settle/refinance its liabilities as they fall due. 'The group's ability to continue as a going concern is dependent on support from the DoT on the AGR (adjusted gross revenue) matter, successfully arranging funding and generation of cash flow from its operations that it needs to settle its liabilities as they fall due,' the auditor said.But the top management was upbeat about the results, pointing out that the pace of subscriber losses had slowed and the average revenue per user (ARPU) improved. 'Early indicators show improvement across key business metrics and with our ongoing investments, we are well placed to effectively participate in the growth opportunity offered by the Industry,' Akshaya Moondra, chief executive of Vodafone Idea, said in an earnings statement late on Friday.Vi commenced 5G services in Delhi-NCR, Mumbai, Chandigarh, and Patna this quarter, and plans to extend coverage to all 17 circles where it holds 5G airwaves by August 2025. However, the widespread 5G rollouts by larger rivals Reliance Jio and Bharti Airtel have made it challenging for Vi to catch up in terms of market penetration, user adoption, and overall perception.The telco's ARPU — a key performance metric — grew marginally to Rs 164 in the March quarter, from Rs 163 in the preceding quarter, as the residual flow-through of headline rate hikes in July 2024 was mostly absorbed by now. Quarterly revenue grew 0.9% quarter-onquarter to Rs 11,014 crore.'This has been a turnaround quarter for us, marked by the highest average daily revenue in the past five years and a significant reduction in subscriber loss,' Moondra said. The telco lost 1.6 million subscribers in the January-March period compared with 5.2 million in the previous three-month period.Its net debt reduced substantially to Rs 1.97 lakh crore as on March 31, from Rs 2.29 lakh crore in the previous quarter, as the Government of India converted AGR-related dues to equity share in the company.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
25 minutes ago
- Time of India
Elon Musk's Tesla to open first showroom in India in July: Know city, EV models, price and more
The world's richest person, Elon Musk, is finally bringing Tesla to India. The electric vehicle giant is all set to open its first Tesla showroom in India this July, with Mumbai being the chosen city. After years of speculation and delays, this move marks Tesla's official entry into the Indian market, which is the third-largest car market in the world. Tesla's First Showroom in India to Open in Mumbai According to a Bloomberg report, Tesla is opening its first retail showroom in Mumbai, Maharashtra, in July. This marks a major step by Elon Musk to introduce Tesla cars in India. A second showroom is also reportedly in the pipeline for New Delhi, further strengthening the company's presence in the country. Tesla Starts Importing Model Y and Components Tesla has already begun importing the first batch of its Model Y electric SUVs along with spare parts, Supercharger units, accessories, and Tesla-branded merchandise. These items are being shipped from the United States, China, and the Netherlands, showing the brand's serious intentions to build a solid infrastructure here. The Model Y, currently the world's best-selling Tesla car, has arrived from Tesla's Gigafactory in Shanghai. Five rear-wheel drive units have been shipped to Mumbai, with each car valued at around Rs 27.7 lakh (approximately $31,988). Due to India's high import taxes, each car attracted over Rs 21 lakh in duties. This aligns with the country's 70% import tax on fully built electric vehicles (CBUs) priced under $40,000. Tesla Model Y India Price to Be Higher Than in the US In India, the Tesla Model Y is expected to cost over $56,000, excluding taxes and insurance. This is a lot more than its US base price of $44,990 (or $37,490 after government incentives). The steep price could be a challenge in India, where most buyers are price-conscious and value affordability over luxury. Can Tesla Succeed in India's Price-Sensitive Market? Electric vehicles (EVs) currently make up only about 5% of new passenger car sales in India. Of these, luxury cars form less than 2% of the total. This means Tesla will have to work hard to gain traction in a market where price plays a major role in buying decisions. However, despite these challenges, Elon Musk and Tesla seem confident about the Indian EV future. Earlier delays were mainly due to disagreements over high import taxes and the demand for setting up a local manufacturing plant. But now, Tesla is moving ahead with its India plans. Tesla Hiring and Expanding Infrastructure in India Tesla currently does not have an official country head after the exit of Prashanth Menon. However, the company is actively hiring for roles in retail, charging infrastructure, and public policy. It's also setting up warehousing operations in Karnataka and increasing its storage capacity near Gurugram, close to Delhi, to support its growing logistics needs. What This Means for Indian Car Buyers With Elon Musk's Tesla stepping into India, car buyers who have been waiting for high-performance electric vehicles now have a new option. The arrival of the Tesla showroom in India and the Model Y gives Indian consumers access to cutting-edge EV technology. However, unless Tesla finds a way to reduce costs—either by local production or reduced duties—it may remain a niche brand for now. Elon Musk's Tesla opening a showroom in India is a major moment for the country's electric vehicle market. Starting with Mumbai, and soon expanding to New Delhi, Tesla is making its presence felt. While the high price of a Tesla car could be a hurdle, the company's long-term success will depend on how well it adapts to Indian conditions and consumer expectations. For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here
News18
39 minutes ago
- News18
FASTag Annual Pass: How To Apply For Unlimited Toll Access With Just Rs 3000
Last Updated: FASTag Annual Pass Application Process: In this article, we have created a step-by-step guide, mentioning how applying for the annual Pass of FASTag. In a move to offer a seamless travel expirence on highways, the central government has proposed an Annual Pass for FASTag for just Rs 3,000. The computers will be able to take the benefits on 15th August 2025, barring commercial vehicles. If you are interested in the pass and wondering how to get it or where to apply it. Do not worry, we have got your back. In this article, we have created a step-by-step guide, mentioning the process of applying for the annual Pass of FASTag. Whether you're a frequent highway traveller or someone who often uses highways, this pass will allow you to ditch long queues, save time and a big chunk of money. It offers to use highways unlimitedly by paying a certain fee. Important Steps To Keep In Mind First things first, ensure that your vehicle is equipped with a valid and active FASTag, issued by leading banks in India such as HDFC, ICICI, Axis Bank, etc or wallet services like Paytm. For offline, the customers are advised to visit the nearest toll plaza office. Once reached, they will ask a few details and requirements, as mentioned below. Step-by-Step Guide For Offline Interested customers can visit the FASTag official web portal, use their FASTag-issuing bank's app, or log in Choose the FASTag interface, click on the service and make the annual payment in advance. To note, the unlimited FASTag fee will vary, depending on the location and vehicle type. Once payment and documents are verified, the Annual Pass is linked to your FASTag ID, allowing the vehicle to pass through the designated toll plaza(s) without getting additional charges (as per the pass terms). After completing the entire process, do not forget to double-check check confirmation message or email for the same for the validity period, toll plaza name, and pass details for records. First Published: June 18, 2025, 15:49 IST
Time of India
an hour ago
- Time of India
Modi launches 105 projects worth over Rs 18,600 crore, in Odisha, ET Infra
Advt Advt Prime Minister Narendra Modi on Friday launched 105 development projects valued at over Rs 18,600 crores, unveiled the " Odisha Vision Document " and flagged off new trains during his visit to the also felicitated several people, including ' Lakhpati Didis ' and others. Modi , who visited Odisha for the sixth time since the BJP government was formed in the state in June 2024, launched the projects at a function at Janata Maidan projects launched by the Prime Minister included drinking water and irrigation, health infrastructure, rural roads and bridges, national highways and railway flagged off the first passenger train to Boudh district after inaugurating the Sonepur-Purunakatak railway line. Railway projects such as the third and fourth rail lines between Sarla-Sason and the fourth rail line between Jharsuguda-Jamga were also apart, Modi also flagged off 100 electric buses under the Capital Region Urban Transport (CRUT) system, promoting eco-friendly urban following people's feedback, the Prime Minister unveiled the 'Odisha Vision Document', the roadmap for the state's development goals, anchored around the centenary of Odisha's formation as a linguistic state in 2036 and India's 100 years of independence in vision aims to transform Odisha into a Dollar 500 billion economy by 2036 and a Dollar 1.5 trillion economy by Prime Minister also launched ' Baraputra Aitihya Gram Yojana ', an initiative to transform birthplaces of Odia icons into memorials, featuring museums, interpretation centres, statues and libraries, thereby promoting cultural tourism and preserving also felicitated some women achievers from across the state, who included some "Lakhpati Didis".'Lakhpati Didi' is an initiative of the Ministry of Rural Development focused on empowering women in Self-Help Groups (SHGs). The goal is to help them achieve an annual household income exceeding Rs one lakh by adopting sustainable livelihood state tops the list of creating 16.60 lakh 'Lakhpati Didis' in the country.
