Latest news with #AGR
Time of India
a day ago
- Business
- Time of India
Telecom industry AGR shows modest 1.7% rise in Q4 FY25
The telecom industry recorded a 1.7% sequential growth in adjusted gross revenue (AGR) in the last quarter of FY25, with the impact of last year's tariff increases waning. Vodafone Idea and Bharat Sanchar Nigam (BSNL) saw sequential declines in their mobile service revenues. Telecom Regulatory Authority of India ( Trai ) data showed for the January-March quarter, the AGR of the industry stood at ₹79,226 crore, a tad higher than ₹77,934 crore in the preceding quarter. Access or mobile services contributed 84.02% of the telecom industry AGR while the remaining amount came from national long distance (NLD), international long distance (ILD), internet service providers (ISPs), etc. In terms of access services, Reliance Jio has extended the gap with Bharti Airtel in terms of AGR growth. Jio's AGR climbed 3.2% to ₹29,464.7 crore in the Q4 from ₹28,542.8 crore in the preceding Q3. Airtel's AGR climbed about 1% to ₹26,324.2 crore. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Swing Trading: Get Free Access to Mr. Hemant's Elite Strategy! TradeWise Learn More Undo The gap between the top two mobile operators had narrowed in the preceding quarter. After reporting a rise in their access services AGR in the FYQ3, both Vodafone Idea and state-run BSNL witnessed a decline in Q4. The AGR of Vodafone Idea declined 3.8% in Q4 to ₹7,653.5 crore from ₹7,958.5 crore in the preceding Q3. Similarly, BSNL's AGR was down 2.3% to ₹2,239.5 crore from ₹2,292.5 crore in the reported period. Live Events Higher quarterly AGR translated into higher license fee and spectrum usage charge (SUC) collections for the department of telecommunications (DoT). The license fee mop-up rose 1.7% sequentially to ₹6,340 crore, while SUC collections rose 1.2% on-quarter to ₹1,000 crore, data collated by the regulator showed. Telcos annually pay 8% of AGR license fees while the overall SUC payout is in the range of 1-3% after the government had said airwaves acquired from the first 5G spectrum auction onwards will not attract any SUC. Overall, sectoral minutes of consumption increased, with the all-India average minutes of usage (MoU) per subscriber per month from wireless services increased 1.6% on-quarter to 1026 minutes in the March quarter. The Trai report on the telecom industry's fiscal fourth quarter performance also indicated that monthly average revenue per user (ARPU) from wireless services increased 0.6% sequentially to ₹182.9. Data collated by the regulator showed the country's internet user base decreased in the March quarter by 0.1% sequentially to 969.1 million.
&w=3840&q=100)
Business Standard
5 days ago
- Business
- Business Standard
Vi survival in doubt as govt rules out equity swap, plans payment relief
The government is preparing a relief package for Vodafone Idea (Vi) but is facing concerns over the company's ability to stay afloat unless its pending spectrum usage charges are waived, according to a report by The Economic Times. There are no plans to convert any more of these dues into equity, as this would raise the government's stake in Vi beyond the current 49 per cent, the report said. One idea is to let Vi clear its adjusted-gross-revenue (AGR) arrears over 20 years instead of the six-year window fixed after the Supreme Court ruling. 'Extending the tenure of AGR payments from the scheduled six annual instalments of ₹18,064 crore to over 20. Despite this, the long-erm sustainability of the company remains in doubt,' an official said, as quoted by the report. The Department of Telecommunications (DoT) models show that if Vi must pay the full ₹18,064 crore by the end of FY26, it would run out of cash before the FY27 bill arrives. Even if each annual instalment is trimmed to ₹6,000 crore–₹8,500 crore through a 20-year schedule, officials fear the numbers still do not add up beyond FY29, the report said. Equity swap done Earlier this year, the government converted ₹36,950 crore of Vi's spectrum arrears (linked to auctions held before 2021) into equity. The move made the state the single-largest shareholder. Ahead of that conversion, Vi had shared financial projections up to FY31, the deadline for settling AGR dues. Because the Centre granted a four-year moratorium on AGR and spectrum payments in FY22, all missed dues now bunch into six hefty instalments that begin with the current financial year and must be paid by 31 March each year. For the January–March quarter, Vi reported a net loss of ₹7,166 crore, wider than the ₹6,609 crore loss in the previous quarter. Auditor S R Batliboi & Associates flagged 'the group's ability to continue as a going concern' because Vi cannot generate or raise enough cash to clear debts when they are due. The telco's board has already approved plans to seek a further ₹20,000 crore through equity or debt, yet lenders remain cautious. Meanwhile Vi's market capitalisation — now about ₹72,300 crore — has slid as its share price drifted from nearly ₹10 in January to ₹6.70 last Friday.
Time of India
5 days ago
- Business
- Time of India
Viability in Doubt as Govt Weighs Relief
The government, which is working on a relief package for Vodafone Idea ( Vi ), is confronted with concerns about the telecom operator 's financial viability in the absence of a waiver of its arrears on spectrum usage charges. The government has said it has no plan to convert more arrears into equity that would increase its stake in the company beyond the existing 49%. Other options being considered, such as allowing Vi to pay the adjusted gross revenue-based arrears over 20 years, instead of the current six, may still not provide enough cash flows for sustaining company operations beyond 2028-29, said government officials. They added that various options were being explored. These include 'extending the tenure of AGR payments from the scheduled six annual instalments of Rs 18,064 crore to over 20. But despite that, the long-term sustainability of the company remains in doubt,' one official said on condition of anonymity. The Department of Telecommunications, based on the current and potential future financial situation of Vi, believes that if the company is required to pay the full Rs 18,064 crore instalment due by end-FY26, it would not have funds to meet the liability in FY27. Even if annual instalments are reduced to Rs 6,000-8,500 crore each by extending the payment period, it still would not bring any tangible benefits. In fact, given the telco's cash flows, it may not meet the liabilities beyond 2028-29. In a worst case scenario, the payment tenure could be as long as 50-100 years, said a second official. At the end of March, the carrier's cash and bank balance totalled Rs 9,930 crore. Following a request from Vi, the government converted Rs 36,950 crore of spectrum arrears into equity in March, becoming the largest shareholder, with a 48.99% stake. These arrears were related to pre-2021 spectrum auctions. Prior to the equity conversion, Vi shared its projections till 2030-31, which is the deadline mandated by the Supreme Court to pay the AGR dues . Since the government had given a four-year moratorium on payment of AGR and spectrum dues from FY22, Vi now needs to clear the entire arrears in six instalments, starting with the current fiscal year. Every year, the instalment has to be made by March 31. 'The company had shown its inability to meet the post-moratorium payment schedule of spectrum and AGR payments during various meetings with DoT,' said a third official. Vi's projected payment for FY26 was more than Rs 30,500 crore before the government converted part of the dues into equity. 'While the company can meet the liabilities in the current fiscal year, it won't be possible starting FY27 unless it manages over Rs 25,000 crore loans from banks and financial institutions,' said an analyst tracking the telecom sector. Brokerage firm Motilal Oswal has cautioned that absence of a relief on the AGR dues and absence of a breakthrough on the company's efforts to raise funds through debt, could result in Vi facing an estimated annual cash shortfall of Rs 20,000 crore. In Vi's January-March earnings report, auditor SR Batliboi & Associates cautioned that the operator's financial performance was hurt by its inability to generate cash flows that it needed to settle/refinance its liabilities as they fall due. Vi reported a net loss of Rs 7,166 crore in January-March, wider than Rs 6,609 crore in October-December 2024. Its board has approved raising a further Rs 20,000 crore through equity or debt, for which the telco is in discussions with lenders. The Rs 72,300-crore market cap company has seen its share price slide from nearly Rs 10 apiece in January to Rs 6.7 as of Friday. 'The group's ability to continue as a going concern is dependent on support from the DoT on the AGR 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.
Time of India
5 days ago
- Business
- Time of India
Vi's future in doubt as government rules out more equity conversion
The government, which is working on a relief package for Vodafone Idea ( Vi ), is confronted with concerns about the telecom operator 's financial viability in the absence of a waiver of its arrears on spectrum usage charges . The government has said it has no plan to convert more arrears into equity that would increase its stake in the company beyond the existing 49%. Other options being considered, such as allowing Vi to pay the adjusted gross revenue-based arrears over 20 years, instead of the current six, may still not provide enough cash flows for sustaining company operations beyond 2028-29, said government officials. They added that various options were being explored. These include 'extending the tenure of AGR payments from the scheduled six annual instalments of Rs 18,064 crore to over 20. But despite that, the long-term sustainability of the company remains in doubt,' one official said on condition of anonymity. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. The Department of Telecommunications, based on the current and potential future financial situation of Vi, believes that if the company is required to pay the full Rs 18,064 crore instalment due by end-FY26, it would not have funds to meet the liability in FY27. Even if annual instalments are reduced to Rs 6,000-8,500 crore each by extending the payment period, it still would not bring any tangible benefits. In fact, given the telco's cash flows, it may not meet the liabilities beyond 2028-29. In a worst case scenario, the payment tenure could be as long as 50-100 years, said a second official. Live Events At the end of March, the carrier's cash and bank balance totalled Rs 9,930 crore. Following a request from Vi, the government converted Rs 36,950 crore of spectrum arrears into equity in March, becoming the largest shareholder, with a 48.99% stake. These arrears were related to pre-2021 spectrum auctions. Prior to the equity conversion , Vi shared its projections till 2030-31, which is the deadline mandated by the Supreme Court to pay the AGR dues . Since the government had given a four-year moratorium on payment of AGR and spectrum dues from FY22, Vi now needs to clear the entire arrears in six instalments, starting with the current fiscal year. Every year, the instalment has to be made by March 31. Bleak Numbers 'The company had shown its inability to meet the post-moratorium payment schedule of spectrum and AGR payments during various meetings with DoT,' said a third official. Vi's projected payment for FY26 was more than Rs 30,500 crore before the government converted part of the dues into equity. 'While the company can meet the liabilities in the current fiscal year, it won't be possible starting FY27 unless it manages over Rs 25,000 crore loans from banks and financial institutions,' said an analyst tracking the telecom sector. Brokerage firm Motilal Oswal has cautioned that absence of a relief on the AGR dues and absence of a breakthrough on the company's efforts to raise funds through debt, could result in Vi facing an estimated annual cash shortfall of Rs 20,000 crore. In Vi's January-March earnings report, auditor SR Batliboi & Associates cautioned that the operator's financial performance was hurt by its inability to generate cash flows that it needed to settle/refinance its liabilities as they fall due. Vi reported a net loss of Rs 7,166 crore in January-March, wider than Rs 6,609 crore in October-December 2024. Its board has approved raising a further Rs 20,000 crore through equity or debt, for which the telco is in discussions with lenders. The Rs 72,300-crore market cap company has seen its share price slide from nearly Rs 10 apiece in January to Rs 6.7 as of Friday. 'The group's ability to continue as a going concern is dependent on support from the DoT on the AGR 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.
Economic Times
5 days ago
- Business
- Economic Times
Vi's future in doubt as government rules out more equity conversion
The Indian government is grappling with Vodafone Idea's (Vi) financial woes, debating relief measures amid concerns about its long-term viability. Even extending payment tenures for adjusted gross revenue (AGR) dues may not suffice, potentially leaving Vi unable to meet liabilities beyond 2028-29. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The government, which is working on a relief package for Vodafone Idea Vi ), is confronted with concerns about the telecom operator 's financial viability in the absence of a waiver of its arrears on spectrum usage charges . The government has said it has no plan to convert more arrears into equity that would increase its stake in the company beyond the existing 49%.Other options being considered, such as allowing Vi to pay the adjusted gross revenue-based arrears over 20 years, instead of the current six, may still not provide enough cash flows for sustaining company operations beyond 2028-29, said government officials. They added that various options were being include 'extending the tenure of AGR payments from the scheduled six annual instalments of Rs 18,064 crore to over 20. But despite that, the long-term sustainability of the company remains in doubt,' one official said on condition of Department of Telecommunications, based on the current and potential future financial situation of Vi, believes that if the company is required to pay the full Rs 18,064 crore instalment due by end-FY26, it would not have funds to meet the liability in FY27. Even if annual instalments are reduced to Rs 6,000-8,500 crore each by extending the payment period, it still would not bring any tangible benefits. In fact, given the telco's cash flows, it may not meet the liabilities beyond a worst case scenario, the payment tenure could be as long as 50-100 years, said a second the end of March, the carrier's cash and bank balance totalled Rs 9,930 a request from Vi, the government converted Rs 36,950 crore of spectrum arrears into equity in March, becoming the largest shareholder, with a 48.99% stake. These arrears were related to pre-2021 spectrum to the equity conversion , Vi shared its projections till 2030-31, which is the deadline mandated by the Supreme Court to pay the AGR dues . Since the government had given a four-year moratorium on payment of AGR and spectrum dues from FY22, Vi now needs to clear the entire arrears in six instalments, starting with the current fiscal year. Every year, the instalment has to be made by March 31.'The company had shown its inability to meet the post-moratorium payment schedule of spectrum and AGR payments during various meetings with DoT,' said a third official. Vi's projected payment for FY26 was more than Rs 30,500 crore before the government converted part of the dues into equity.'While the company can meet the liabilities in the current fiscal year, it won't be possible starting FY27 unless it manages over Rs 25,000 crore loans from banks and financial institutions,' said an analyst tracking the telecom firm Motilal Oswal has cautioned that absence of a relief on the AGR dues and absence of a breakthrough on the company's efforts to raise funds through debt, could result in Vi facing an estimated annual cash shortfall of Rs 20,000 Vi's January-March earnings report, auditor SR Batliboi & Associates cautioned that the operator's financial performance was hurt by its inability to generate cash flows that it needed to settle/refinance its liabilities as they fall reported a net loss of Rs 7,166 crore in January-March, wider than Rs 6,609 crore in October-December 2024. Its board has approved raising a further Rs 20,000 crore through equity or debt, for which the telco is in discussions with Rs 72,300-crore market cap company has seen its share price slide from nearly Rs 10 apiece in January to Rs 6.7 as of Friday.'The group's ability to continue as a going concern is dependent on support from the DoT on the AGR 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.
