Vodafone Idea at risk of 'imminent bankruptcy': ICICI Sec


Mumbai, Nov 16 (IANS): Brokerage firm ICICI Securities on Friday said without relief from the government Vodafone Idea runs the risk of "imminent bankruptcy".

This comes after Vodafone Idea reported a net loss of Rs 50,922 crore for the September quarter, the highest ever net loss by a company in India's corporate history.

"We continue to believe that Vodafone Idea is weakest among the surviving three telcos. The government move on AGR issue in terms of relief along with reform measures will hold key ahead. We highlight that this penalty if levied in totality will be huge stress on balance sheet and imminent bankruptcy," ICICI Securities said in a note.

The brokerage firm further said that Vodafone Idea Limited reported a relatively weaker set of operating performance with weak revenues and EBITDA.

Besides it added: "We note that this is the fifth consecutive quarter of subscriber base decline and ARPU has no meaningful increase. We highlight that the company added 5.5 million 4G customers in Q2FY20, which is the only solace.

"The company reported a loss of Rs 50,922 crore, given weak operating performance and further accentuated by exceptional items worth Rs 30,774 crore including Rs 25,678 crore towards licence fee and SUC payable (including interest and penalty) on account of recent Supreme Court judgement and deferred tax of Rs 13,927 crore and remaining on assets impairment," ICICI Securities said.

  

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Comment on this article

  • Clifford, Mangalore

    Fri, Nov 15 2019

    Some more job losses......????

    DisAgree Agree [1] Reply Report Abuse

  • Ahmed, Bangalore

    Fri, Nov 15 2019

    To please Gujju and to uplift them, our Gujju policy has destroyed other players in the market. Only benefiting are Gujju businessman with the helping hand of Central government. One fine day this will kill all other competitors and will make almost many civilians on road without any income.

    DisAgree [3] Agree [4] Reply Report Abuse


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Title: Vodafone Idea at risk of 'imminent bankruptcy': ICICI Sec



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