Subscriber base falls by further 4.2%; the company acknowledges cause for concerns and warns of impact of AGR case
Image: Rupak De Chowdhuri​/ Reuters
Vodafone Idea, India’s third largest telecom service provider by subscribers, reported a consolidated net loss of Rs 11,643.5 crore in the quarter ended March, and a massive Rs 73,878 crore loss for FY20. This is the seventh successive quarterly loss it has suffered, as its subscriber base continues to fall and one-time dues are owed to the government.
Vodafone Idea shares closed down 4.25% at Rs 10.15 at the BSE, after the earnings.
The company has acknowledged that its ability “to continue as a going concern is essentially dependent on a positive outcome” of the payment of the adjusted gross revenues (AGR) case, which is being heard by the Supreme Court. Vodafone has recognised the total estimated liability to be at Rs 46,000 in license fee, spectrum usage charges (SUC), interest and penalties, which it owes to the Department of Telecommunications (DoT).
The government, however, estimates the dues to be higher at Rs 58,250 crore. “The above factors indicate that material uncertainty exists that cast significant doubt on the company’s ability to continue as a going concern and its ability to generate the cash flow that it needs to settle/refinance its liabilities and guarantees as they fall due,” Vodafone Idea said in its financial results statement filed with the stock exchanges. The company has already paid up Rs 6,854 crore.