Vodafone Idea's losses in Q4 increase 19.5% to ₹7,675 crore
Vodafone Idea (Vi) has reported a year-on-year increase in losses of 19.5% for the last quarter of fiscal 2024, amounting to ₹7,674.6 crore compared to ₹6,418.9 crore in the same period last year. Despite this, the company's revenues remained largely unchanged with Q4FY24 revenues standing at ₹10,606.8 crore compared to ₹10,531.9 crore in Q4FY23. Prior to these results, Vi raised nearly ₹18,000 crore through a follow-on public offer that was subscribed seven times over.
Vodafone Idea's future investment plans
Vodafone Idea plans to use the equity funding and debt funding, including non-fund based facilities, primarily for capital expenditure, which is expected to be in the range of ₹50,000-55,000 crore over the next three years. The capex will be directed toward expanding 4G coverage in 17 priority circles and launching 5G services in key cities and regions. "We will continue to work toward enhancing our services to offer seamless and world-class digital experience to our consumers," Vi stated.
Vodafone Idea negotiates additional funding
Vodafone Idea is in talks with a consortium of banks to raise up to ₹25,000 crore and additional non-fund based facilities of up to ₹10,000 crore. The company highlighted that its bank exposure has reduced by ₹34,600 crore following the telecom reforms package introduced in September 2021. "In line with our stated strategy, our investments are focused toward our 17 priority circles to expand our high-speed broadband network coverage and capacity," Vi noted.
Vodafone Idea's subscriber base and revenue per user
Vodafone Idea reported a total subscriber base of 213 million at the end of Q4FY24, indicating a loss of two million subscribers on a quarter-on-quarter basis. The average revenue per user (ARPU) remained stable at ₹146. The company's CEO, Akshaya Moondra, stated, "Our equity fund raise of ~₹215 billion (₹21,500 crore) 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."
Vodafone Idea's equity infusion and shareholding structure
Vodafone Idea reported that its shareholders approved an equity infusion of ₹2,075 crore on a preferential basis from an Aditya Birla Group entity. This, along with a preferential equity raise of ₹494 crore in 2022 from Vodafone Group and ABG, takes the total fund infusion by both promoter groups to ₹7,000 crore between March 2022 and May 2024. Following the FPO and preferential allotment to promoters, the promoter shareholding stands at 38.2% and government shareholding at 23.8%.
