Financial Insights

Vodafone Idea’s net losses rise in Q3 results

Vodafone Idea published its results for Q3 ended on December 2021 on friday. Its net loss widened to Rs 7,230.9 crores as opposed to Rs 7,132.3 crores for the quarter ended on September 2021. However, its net loss grew 59.54% YoY basis from Rs 4,532.1 crores on December 2020. Its total comprehensive loss for the period stood at Rs 7,234.1 crores.

Revenues rose by 3.3% QoQ to Rs 9,717.3 crores and its other income rose by 18.5%. Operating profit fell 1.2% to Rs 3816.5 crores. Its EBITDA margin contracted from 41.1% last quarter to 39.3% in current quarter. Its churn rate grew from 2.9% in last quarter to 3.4% this quarter. Churn rate is the rate at which customers stop conducting businesses with an entity.

Its Average Revenue Per User (ARPU) rose from Rs 109 to Rs 115. Rise in revenues was due to the higher ARPU that was supported by the tariff hikes during the quarter. The company lost several subscribers in the quarter as its debts, excluding lease liabilities stood at Rs 1.9 lakh crore.

The stock saw a significant fall last week as it fell 20.54%. On 21/01/2022, the stock closed at a price of Rs 11.85 per share.

Highlight by Aman Agarwal.

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