Vodafone Idea posts highest-ever loss by an Indian firm at Rs 73,878 crore in FY20
New Delhi: Vodafone Idea, the country's third largest telecom operator, on Wednesday reported a staggering Rs 73,878 crore of net loss in fiscal ended March 2020 - the highest ever by any Indian firm - after it provisioned for Supreme Court mandated statutory dues.
The firm, which has to pay Rs 51,400 crore dues after the apex court ordered the non-telecom revenues to be included in calculating statutory dues, said the liability has "cast significant doubt on the company's ability to continue as a going concern".
In a regulatory filing, Vodafone Idea (VIL) reported widening of March quarter net loss to Rs 11,643.5 crore. Its losses stood at Rs 4,881.9 crore in the same period a year ago and Rs 6,438.8 crore in previous October-December quarter.
The Department of Telecom (DoT) estimates the firm's adjusted gross revenue (AGR) dues at Rs 58,254 crore for period up to FY 2016-17, but the company put the dues at Rs 46,000 crore "after adjustment of certain computational errors and payments made in the past not considered in the DoT demand."
Of the total dues, it has made a payment of Rs 6,854.4 crore.
The company took a hit of Rs 1,783.6 crore on account of AGR-related liabilities, and Rs 3,887 crore on account of one-time spectrum charges (OTSC), both of which were recognised as exceptional items during the quarter ended March 2019.
Revenue from operations for the just-ended quarter came in at Rs 11,754.2 crore. For the full year FY20, losses ballooned to Rs 73,878.1 crore. Vodafone Idea's losses stood at Rs 14,603.9 crore in FY19.
The company said that the financial results for the year ended March 31, 2020, are not comparable to those reported for the same period of the preceding year (merger between Vodafone India and Idea Cellular had taken effect in August 2018).
The revenue from operations for full year FY20 stood at Rs 44,957.5 crore. The same was Rs 37,092.5 crore in FY19.
In a statement, the company said that the revenue had witnessed strong growth of six per cent quarter-on-quarter, driven by prepaid tariff hike effective December 2019.
Ravinder Takkar, MD and CEO, Vodafone Idea said Our focus on rapid network integration, as well as 4G coverage and capacity expansion, has further improved customer experience.
We thus continue to lead the league tables on 4G data download speeds across several states, metros and large cities. We have achieved our full opex merger synergy target."
He added that the next Supreme Court hearing on AGR matter is scheduled to be held in the third week of July.
"Meanwhile, we continue to actively engage with the government seeking a comprehensive relief package for the industry, which faces critical challenges," he said.
Gross debt (excluding lease liabilities) as on March 31, 2020, was Rs 1,15,000 crore including deferred spectrum payment obligations due to the government of Rs 87,650 crore.
"The network integration is in final stages of completion but has been impacted by the nationwide lockdown due to COVID-19. As of date, we have completed network integration in 92 per cent of total districts," the company added.
Due to the continuation of nationwide lockdown, the remaining consolidation is expected to take longer than initially expected, it said.
Its subscriber base eroded to 291 million in March quarter from 304 million in December quarter. Average revenue per user (ARPU) for Q4 improved to Rs 121 versus Rs 109 in Q3FY20, driven by the prepaid tariff hike effective from December 2019.
Vodafone Idea maintained it plans to monetise its 11.15 per cent stake in Indus Towers on completion of the Indus-Infratel merger. VIL said that is no material impact of the pandemic on its overall performance, but it continues to monitor the situation closely.
On AGR dues, the company said that it has recognised a total estimated liability of Rs 46,000 crore.
"The total estimated liability of Rs 460,000 million stands reduced as at 31 March, 2020 to the extent of payment (Rs 68,544 million) made...," the company said in a BSE filing.
With regard to OTSC levy, it said that Rs 3,890 crore has been recognised as exceptional item during the quarter.
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Congress chief Kharge writes to PM Modi, seeks time to explain party's 'Nyay Patra'
New Delhi, Apr 25: Congress chief Mallikarjun Kharge on Thursday wrote to Prime Minister Narendra Modi and sought time from him to explain in person the party's 'Nyay Patra'.
In his two-page letter, he told the prime minister that he is being misinformed by his advisors about things that are not even written in the 'Nyay Patra' -- the Congress' manifesto for the Lok Sabha elections.
The letter comes after the prime minister attacked the Congress over its manifesto, alleging that the party aims to "redistribute the wealth" of people and give it away to "infiltrators".
Modi also accused the Congress of snatching women's "mangalsutra".
In his letter, Kharge said the Congress' 'Nyay Patra' aims at providing "nyay (justice)" to the youngsters, women, farmers, labourers and marginalised people across all castes and communities.
"It has become your habit to seize on a few words taken out of context and create a communal divide. You are lowering the dignity of the chair by speaking in this manner," he said.
"You are being misinformed by your advisors about things that are not even written in our manifesto. I would be more than happy to meet you in person to explain our 'Nyay Patra' so that, as prime minister of the country, you don't make any statements that are false," he added.
The Congress chief also said he is neither shocked nor surprised by the language used by the prime minister in his recent speeches.
"It was expected that you and other leaders from your party would start speaking in this manner after you saw the dismal performance of the BJP in the first phase of the elections," Kharge said in the letter.
The Congress has been talking about the deprived poor and their rights ("nyay"), he said and added, "We are aware that you and your government do not have any concern for the poor and dispossessed."
"Your 'suit-boot ki sarkar' works for the corporates whose taxes you reduced while the salaried class pays higher taxes. The poor pay GST even on food and salt and the rich corporate claim GST refunds. That is why, when we talk of inequality between the rich and the poor, you are purposely equating it with Hindu and Muslim," Kharge claimed.
"Our manifesto is for the people of India -- whether they are Hindu, Muslim, Christian, Sikh, Jain or Buddhist. I think you have still not forgotten your pre-Independence allies the Muslim League and colonial masters," he charged.
Kharge claimed the Congress has always served to empower the poor while "you have ruled to snatch the earnings and wealth of the poor".
He said in the letter, "Your government was the one who used demonetisation as an 'organised loot and legalised plunder' to transfer the money deposited by the poor in the banks to the rich in the form of loans. Then, as part a of conscious design, these loans were surreptitiously written off by your government. The lakhs of crores of corporate loans that your government has written off since 2014 is a transfer of wealth from poor to rich. No farmer's loans, artisan's loans, MSME loans or student loans were waived off by you."
"You and your government have repeatedly turned away from the atrocities that the poor and backward women are facing … Today, you talk about their 'mangalsutra'. Isn't your government responsible for the atrocities against women in Manipur, against Dalit girls, garlanding of rapists? When farmers are committing suicide under your government, how are you protecting their wives and children?," Kharge asked.
The Congress chief suggested that Modi read about "Nari Nyay" that, he said, the party will implement when its comes to power.
Kharge also advised the prime minister to not "get carried away by your own people who are clapping at your speeches".
"They are not allowing you to hear the crores of right-thinking citizens who are disappointed by your speeches," the Congress chief said.
Sharing Kharge's letter on X, Congress General Secretary Jairam Ramesh said, "Congress President Mallikarjun Kharge ji has just written to the prime minister, saying that he would be happy to meet him to explain the reality of the Congress' 'Nyay Patra', which Mr Modi may have missed in his persistent efforts to distort and defame it."
कांग्रेस अध्यक्ष मल्लिकार्जुन @kharge जी ने अभी प्रधानमंत्री को पत्र लिखकर उनसे मिलने का समय मांगा है। प्रधानमंत्री #CongressNyayPatra पत्र की जिन चीज़ों को लेकर भ्रम फैला रहे हैं और लोगों को गुमराह करने की नाकाम कोशिश कर रहे हैं, उन्हें खरगे जी प्रधानमंत्री को मिलकर सही अर्थों… pic.twitter.com/7D4Mk085je
— Jairam Ramesh (@Jairam_Ramesh) April 25, 2024
