Vodafone Idea Plunges 8% Post SC Dismisses Review Petition

Vodafone Idea share price erased all its morning gains and slipped more than 8 percent intraday on February 14 after the Supreme Court (SC) dismissed the review petitions filed by the telecom companies.

Supreme Court slammed DoT for staying coercive action against the telecom companies for recovery proceedings.

SC will draw contempt against the DoT officers & the telecom companies and dismissed the review petitions as yet not a penny has been deposited by the companies.

In the morning trade the share price surged 15 percent ahead of fresh plea hearing in the Supreme Court for payment of AGR dues.

However, the share price tumbled more than 24 percent from its intraday high of Rs 5.25 per share

The company has reported a loss of Rs 6,453.2 crore for the December quarter of FY20 against a loss of Rs 5,004.6 crore posted in the corresponding quarter of the previous financial year.

Revenue for the same quarter came in at Rs 11,089.4 crore in Q3FY20, down 5.7 percent year-on-year (YoY), against Rs 11,764 crore in Q3FY19.

Revenue grew 2.3 percent QoQ, supported by strong growth in 4G additions, while average daily revenue (ADR) returned to growth after 14 quarters of decline, the company claimed.

EBITDA for the quarter increased to Rs 3,420 crore, up 0.7 percent QoQ driven by higher revenue and incremental synergy realisations. EBITDA margin stood at 11.6 percent against 10.2 percent in Q2FY20.

The average revenue per user (ARPU) came at Rs 109 against Rs 107 (QoQ) supported by an improved consumer mix.―Money Control