Results     17-May-24
Analysis
Vodafone Idea
Net loss widens to Rs 7674.6 crore in Q4FY2024
On consolidated basis

Quarter ended March 2024 compared with Quarter ended March 2023.

Net sales (including other operating income) of Vodafone Idea has increased 0.71% to Rs 10606.8 crore.  

Operating profit margin has jumped from 39.98% to 40.88%, leading to 2.98% rise in operating profit to Rs 4,335.80 crore.  Employee cost increased from 4.60% to 5.13%.   Other expenses fell from 55.39% to 53.99%.   Selling and administration expenses fell from 11.87% to 11.06%.   Telecommuncation charges fell from 32.96% to 32.31%.   

Other income fell 65.35% to Rs 32.5 crore.  PBIDT rose 1.49% to Rs 4368.3 crore.  Provision for interest rose 25.57% to Rs 6280.3 crore.  Loan funds rose to Rs 2,43,809.00 crore as of 31 March 2024 from Rs 2,37,766.00 crore as of 31 March 2023.  Inventories declined from Rs 16.30 crore as of 31 March 2023 to Rs 1.20 crore as of 31 March 2024.  Sundry debtors were higher at Rs 2,194.80 crore as of 31 March 2024 compared to Rs 2,164.00 crore as of 31 March 2023.  Cash and bank balance declined from Rs 855.40 crore as of 31 March 2023 to Rs 536.20 crore as of 31 March 2024.  Investments declined from Rs 5.80 crore as of 31 March 2023 to Rs 0.50 crore as of 31 March 2024.  

PBDT fell 174.12% to Rs 1912 crore.  Provision for depreciation rose 0.83% to Rs 5751.3 crore.  Fixed assets declined from Rs 60,121.40 crore as of 31 March 2023 to Rs 52,814.80 crore as of 31 March 2024.  Intangible assets declined from Rs 1,14,010.20 crore to Rs 1,05,499.10 crore.  

Profit before tax down 19.72% to Rs -7,663.30 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was debit of Rs 8.7 crore, compared to credit of Rs 4.7 crore.  Effective tax rate was negative 0.11% compared to 0.07%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 19.56% to Rs -7,674.60 crore.  

Equity capital increased from Rs 48,679.70 crore as of 31 March 2023 to Rs 50,119.80 crore as of 31 March 2024.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 48.91% as of 31 March 2024 ,compared to 50.36% as of 31 March 2023 .  

 

 

Full year results analysis.

Net sales (including other operating income) of Vodafone Idea has increased 1.13% to Rs 42651.7 crore.  

Operating profit margin has jumped from 39.87% to 40.15%, leading to 1.84% rise in operating profit to Rs 17,126.00 crore.  Purchase of finished goods cost rose from 0.02% to 0.04%.   Employee cost increased from 4.42% to 4.98%.   Other expenses fell from 55.68% to 54.83%.   Selling and administration expenses rose from 10.95% to 11.36%.   Telecommuncation charges fell from 33.14% to 32.66%.   

Other income fell 63.64% to Rs 113.2 crore.  PBIDT rose 0.65% to Rs 17239.2 crore.  Provision for interest rose 10.32% to Rs 25765.5 crore.  Loan funds rose to Rs 2,43,809.00 crore as of 31 March 2024 from Rs 2,37,766.00 crore as of 31 March 2023.  Inventories declined from Rs 16.30 crore as of 31 March 2023 to Rs 1.20 crore as of 31 March 2024.  Sundry debtors were higher at Rs 2,194.80 crore as of 31 March 2024 compared to Rs 2,164.00 crore as of 31 March 2023.  Cash and bank balance declined from Rs 855.40 crore as of 31 March 2023 to Rs 536.20 crore as of 31 March 2024.  Investments declined from Rs 5.80 crore as of 31 March 2023 to Rs 0.50 crore as of 31 March 2024.  

PBDT fell 36.95% to Rs 8526.3 crore.  Provision for depreciation fell 1.81% to Rs 22633.5 crore.  Fixed assets declined from Rs 60,121.40 crore as of 31 March 2023 to Rs 52,814.80 crore as of 31 March 2024.  Intangible assets declined from Rs 1,14,010.20 crore to Rs 1,05,499.10 crore.  

Profit before tax down 6.44% to Rs -31,159.80 crore.  Provision for tax was expense of Rs 828.6 crore, compared to Rs 3.5 crore.  Effective tax rate was negative 2.72% compared to negative 0.01%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 6.61% to Rs -31,238.40 crore.  

Equity capital increased from Rs 48,679.70 crore as of 31 March 2023 to Rs 50,119.80 crore as of 31 March 2024.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 48.91% as of 31 March 2024 ,compared to 50.36% as of 31 March 2023 .  

Cash flow from operating activities increased to Rs 20,826.10 crore for year ended March 2024 from Rs 18,868.70 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 1,613.90 crore, compared to Rs 3,942.20 crore during the year ended March 2023.  

Others:

ARPU for the quarter stood at Rs. 146 vs Rs. 135 in Q4FY23; YoY growth of 7.6%.

4G subscriber base increased to 126.3 million vs 122.6 million in Q4FY23.

Raised Rs 18000 crore via FPO.

Shareholders approved the equity issuance of Rs. 2075 crore via Preferential allotment to one entity of ABG (Promoter group) at a price of Rs 14.87 per equity share.

ATC converted Optionally convertible debentures amounting to Rs. 1440 crore into equity shares.

Debt Fund Raise

The company is in discussions with consortium of banks to raise upto Rs 25000 crore and additional non-fund based facilities of upto Rs 10000 crore. Post the Telecom reforms package in September 2021, the company’s bank exposure has reduced byRs 34600 crore.

CAPEX: The company plans to incur CAPEX of RS 50000 to 55000 crore in next three years. The capex will be towards expanding 4G population coverage in 17 priority circles, 5G launch in key cities / geographies and capacity expansion to address the increasing data demand.

 

Management Commentary:

Commenting on the performance Akshaya Moondra, CEO, Vodafone Idea Limited, said “We are pleased to report annual revenue and EBITDA (pre- IndAS) growth for the second consecutive year on the back of consistently improving performance for last several quarters despite significantly lower investments; a clear reflection of our execution capabilities. We registered growth in ARPU and 4G subscribers for 11 successive quarters. Our equity fund raise of Rs. 215 billion will enable us to kickstart the investment cycle to expand our 4G coverage as well as launch of 5G services to effectively participate in the industry growth opportunities. We are engaged with our lenders for tying up debt funding towards the execution of our overall network expansion plan.”



Vodafone Idea : Consolidated Results
 Quarter endedYear ended
Particulars202403202303Var.(%)202403202303Var.(%)
Net Sales (including other operating income)10,606.8010,531.900.7142,651.7042,177.201.13
OPM (%)40.8839.9890 bps40.1539.8728 bps
OP4,335.804,210.302.9817,126.0016,817.001.84
Other Inc.32.5093.80-65.35113.20311.30-63.64
PBIDT4,368.304,304.101.4917,239.2017,128.300.65
Interest6,280.305,001.6025.5725,765.5023,354.3010.32
PBDT-1,912.00-697.50-174.12-8,526.30-6,226.00-36.95
Depreciation5751.35703.70.8322633.523049.7-1.81
PBT-7,663.30-6,401.20-19.72-31159.8-29275.7-6.44
Share of Profit/(Loss) from Associates-2.60--5.50.5PL
PBT before EO-7665.9-6401.2-19.76-31165.3-29275.2-6.46
EO Income0-22.4-755.5-22.4LP
PBT after EO-7665.9-6423.6-19.34-30409.8-29297.6-3.80
Taxation8.7-4.7PL828.63.523,574.30
PAT-7674.6-6418.9-19.56-31238.4-29301.1-6.61
Minority Interest (MI)00-00-
Net profit-7674.6-6418.9-19.56-31238.4-29301.1-6.61
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations-7674.6-6418.9-19.56-31238.4-29301.1-6.61
EPS (Rs)*-1.15-0.96-19.98-4.69-4.40-6.46
* EPS is on current equity of Rs 66,483.46 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


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