Vodafone Idea Ltd Mumbai/IBNS: Vodafone Idea Ltd presented yet another dismal performance as the telecom major announced its Q1FY22 results marked by an erosion of subscriber base.
Vodafone Idea's subscribers declined by a massive 12 million in Q1FY22 while it reported a decline of 4.7 per cent in revenue sequentially to Rs 9,200 crore.
Average revenue per user (ARPU), an important parameter to ascertain the performance of a telecom company, fell 2.8 percent sequentially to Rs104.
Its Q1FY22 annualised cash Ebitda stood at Rs 5,100 crore which the reports said will not be enough to cover the debts.
The telecom's net debt stood at Rs 1,90,700 crore, which includes deferred spectrum liability of Rs 1,06,000 crore, AGR liability of Rs 62,200 crore and bank borrowing of Rs 23,400 crore.
It reported a net loss of Rs 7,300 crore in Q1FY22.
According to a Mint report, the company has more liabilities lined up due for payments such as annual payments towards AGR liability of Rs 9,000 crore in March 2022; bank guarantee of Rs14,300 crore coming up for renewal, annual payment towards spectrum due in April 2022 and bank debt repayment by June 2022.
In the hopes of some relief, the company has filed a review petition in the Supreme Court towards AGR liability seeking a correction for the alleged arithmetical errors.
It has also sought a moratorium from the Department of Telecommunication (DoT) for the payment of spectrum dues.
The Mint report stated citing analysts that there is little hope for the company's survival unless it raises more funds from the investors or takes steep tariff hikes.
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