Social News XYZ     

Voda-Idea, Airtel struggle in early trade over poor Q2 numbers

Voda-Idea, Airtel struggle in early trade over poor Q2 numbers

Mumbai, Nov 15 (SocialNews.XYZ) Vodafone Idea on Friday hit the lower circuit, after falling over 10 per cent on the BSE after it reported a net loss of Rs 50,922 crore for the September quarter, the highest ever net loss by a company in India's corporate history.

Bharti Airtel fell over 2 per cent after it logged its worst quarter ever, in terms of net loss in a quarter.

 

Both Vodafone Idea and Airtel took a hit on its balance sheet and the bourses after the Supreme Court ruling on the adjusted gross revenue (ADR). The court had upheld the government's broader definition of revenue, on which it calculates levies on telecom operators, resulting in dues of over Rs 92,000 crore on the telecom industry.

Vodafone Idea said in a regulatory filing that the apex court order on AGR has resulted in liabilities on accounts of licence fee and spectrum charges to the tune of Rs 44,150 crore which has to be paid within three months. Airtel also said the court judgment has significant financial implications on the company.

Emkay Global, in a note, said that the AGR penalty will undoubtedly impact the Bharti Airtel's balance sheet and borrowing costs. "Further, given the quantum of the penalty, we believe that Bharti will have to raise capital to keep leverage under check.

"Nevertheless, the weakening financial viability of Vodafone Idea Aeven if the companies get a relief from the government on payment timeline and some potential license fee reduction in the future. We have assumed that Bharti will gain 40 per cent of VIL's revenues or subscribers, while JIO might garner a higher share of 60 per cent," Emkay said.

Source: IANS

Facebook Comments
Voda-Idea, Airtel struggle in early trade over poor Q2 numbers

About Gopi

Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.

He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.

When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.

He can be reached at gopi@socialnews.xyz