Vodafone Idea Ltd. reported 4% QoQ Ebitda growth (pre Ind Accounting Standard-116), led by reduction in network opex attributed to seasonality and decreased roaming/access cost.
This is despite flat revenue growth, which was adversely affected by the loss of 4.6 million subscribers. This was partially mitigated by a 2% QoQ growth in average revenue per user.
Vodafone Idea continues to lose market share, partly accentuated by recent tariff hikes. It continues to explore avenues for fundraising, complemented by financial support of Rs 20 billion from one of its promoters.
However, the liquidity situation continues to appear bleak, given that there is a scheduled debt repayment of Rs 54 billion in the next one year, against Q3 FY24 annualized Ebitda (pre IND-AS 116) of Rs 86 billion. We reiterate our ‘Neutral’ stance on the stock.