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.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
MP HC sets up judicial commission to probe water contamination in Indore
Indore (PTI): The Indore bench of Madhya Pradesh High Court on Tuesday set up a commission of inquiry comprising a former HC judge to probe the issue of water contamination in city's Bhagirathpura, saying the matter requires probe by an independent, credible authority and "urgent judicial scrutiny".
It also directed the commission to submit an interim report after four weeks from the date of commencement of proceedings.
A division bench of Justices Vijay Kumar Shukla and Alok Awasthi constituted the commission while hearing several public interest litigations (PILs) filed simultaneously regarding the deaths of several people in Bhagirathpura due to the consumption of contaminated water.
The HC reserved the order after hearing all the parties during the day, and released it late at night.
The state government on Tuesday told the HC that the deaths of 16 people in Indore's Bhagirathpura area was possibly linked to a month-long outbreak of vomiting and diarrhoea caused by contaminated drinking water.
The government presented an audit report of 23 deaths from the current gastroenteritis epidemic in Bhagirathpura before the bench, suggesting that 16 of these fatalities may have been linked to the outbreak of vomiting and diarrhoea caused by contaminated drinking water.
The report, prepared by a committee of five experts from the city's Government Mahatma Gandhi Memorial Medical College, stated that the deaths of four people in Bhagirathpura were unrelated to the outbreak, while no conclusion could be reached regarding the cause of death of three other people in the area.
During the hearing, the high court sought to know from the state government the scientific basis behind its report.
The division bench also expressed surprise at the state government's use of the term "verbal autopsy" in relation to the report, sarcastically stating that it had heard the term for the first time.
The HC expressed concern over the Bhagirathpura case, stating that the situation was "alarming," and noted that cases of people falling ill due to contaminated drinking water have also been reported in Mhow, near Indore.
In its order, the HC said the serious issue concerning contamination of the drinking water supply in Bhagirathpura area allegedly resulted in widespread health hazards to residents, including children and elderly persons.
According to the petitioners and media reports, death toll is about 30 till today, but the report depicts only 16 without any basis or record, it said.
It is averred that sewage mixing, leakage in the pipeline, and failure of civic authorities to maintain potable water standards have led to the outbreak of water-borne diseases. Photographs, medical reports, and complaints submitted to the authorities prima facie indicate a matter requiring urgent judicial scrutiny, the HC said.
"Considering the gravity of the allegation and affecting the right to life under Article 21 of the Constitution of India and the need for an independent fact-finding exercise, the Court is of the opinion that the matter requires investigation by an independent, credible authority," it said.
"Accordingly, we appoint Justice Sushil Kumar Gupta, former judge of the Madhya Pradesh High Court, a one-man commission of inquiry into the issues relating to water contamination in Bhagirathpura, Indore, and its impact on other areas of the city," the HC added.
As per the order, the commission shall inquire into and submit a report on the cause of contamination -- whether the drinking water supplied to Bhagirathpura was contaminated; and the source and nature of contamination (sewage ingress, industrial discharge, pipeline damage etc).
The panel will also probe the number of actual deaths of affected residents on account of contaminated water; find out the nature of disease reported and adequacy of medical response and preventive measures; suggest immediate steps required to ensure safe drinking water as well as long-term infrastructural and monitoring reforms.
It will also identify and fix responsibility upon the officers and officials found prima facie responsible for the Bhagirathpura water contamination incident, and suggest guidelines for compensation to affected residents, particularly vulnerable sections.
The commission shall have powers of a civil court for the purpose of summoning officials and witnesses; calling up records from the government department, hospitals, laboratories and civic bodies; ordering water quality testing through accredited laboratories; conducting spot inspections.
All state authorities involving district administration, Indore Municipal Corporation, public health engineering department and Madhya Pradesh Pollution Control Board shall extend full co-operation and provide records as sought by the commission, it said.
The state government shall provide office space, staff, and logistical support to the commission, it said.
During the hearing in the day, the state government also presented a status report to the court in this matter.
According to reports, a total of 454 patients were admitted to local hospitals during the vomiting and diarrhea outbreak, of whom 441 have been discharged after treatment, and 11 are currently hospitalised.
According to officials, due to a leak in the municipal drinking water pipeline in Bhagirathpura, sewage from a toilet was also mixed in the water.
