Vodafone Idea Shares Down Ahead Of Q1 Results

Shares of Vodafone Idea were trading higher in early trade on Friday ahead of its financial results for the quarter ended June 30.

The scrip was up 1.34 percent at Rs 9.85 at around 9.44 am (IST), while the BSE Sensex was trading almost flat at 37,827 at around the same time.

Brokerage firm Kotak Institutional Equities expects flat revenue growth at Rs 11,800 crore from Vodafone Idea in Q2FY19. However, it projected a sharp jump of 20.90 percent QoQ in EBITDA at Rs 1,915.90 crore for the quarter ended June 30.

“We do expect a sharp jump in EBITDA on the back of further progress on delivery of cost synergies. Net finance costs should see a sharp sequential decline on account of lower debt balance post the Rs 25000 crore rights issue,” the brokerage house said.

It also expects an ARPU print of Rs114 per month, up 9.6 per cent QoQ. “The sequential jump is optical thanks to the sharp decline in average subs base,” it said while adding the company may report a loss of Rs 3,369.10 crore in Q1FY20 over a loss of Rs 4,881.90 crore in Q4FY19.―India Finance News