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Country’s largest telecom player Vodafone Idea has reported a net loss for the July-September quarter on Wednesday at Rs 4,974 crore.
Country’s largest telecom player Vodafone Idea has reported a net loss for the July-September quarter on Wednesday at Rs 4,974 crore. This is the first quarterly result for the merged entity after Vodafone India and Idea Cellular merger got approval on August 30 this year.
The company also announced plans to raise capital of about Rs 25,000 crore, including infusion by Vodafone Group of Rs 11,000 crore and Aditya Birla Group of up to Rs 7,250 crore. The second-quarter net loss included a one-time charge of Rs 566 crore, mainly due to integration and merger related costs.
The revenue from operations stood at Rs 7,664 crore. The results include numbers for Idea Cellular up to August 30 and Vodafone Idea from August 31 to September 30, which is why they are not comparable to earlier periods, the company said in a statement.
The Board of Directors of Vodafone Idea has set up a committee to evaluate a potential capital raise through options including, but not limited to, a rights issue, qualified institutional placement and a preferential share issue. If approved, the capital would be raised by the fourth quarter of this fiscal.
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“Headline tariffs remained stable during the quarter. However, customer migration to lower Arpu (average revenue per user) offerings led to a 4.7% quarter-on-quarter decline in Arpu to Rs 88 for the quarter,” the statement said. The company lost 13 million customers during the quarter.
This story first appeared in DNA Money: Voda Idea posts Rs 5K cr loss in Q2, to raise Rs 25K cr