Vodafone Idea Q4 results preview: Margin seen to rise 30bps QoQ; ARPU likely at Rs 147

The country’s third-leading telecom operator Vodafone Idea (Vi) is scheduled to report its Q4FY24 earnings later today. Zee Business research desk estimates the telco’s loss to mount sequentially from Rs 6986 crore in the December-ended quarter to Rs 7,650 crore during the period under review. Adjusted loss, however, is seen to log a 1.2 per cent decline quarter-on-quarter (QoQ) to Rs 7,650 crore from Rs 7,742 crore reported in the previous quarter.

In the previous December 2023 quarter, the company reported a one-time exceptional gain of Rs 755 crore arising out of TDSAT ruling and accepted by the department of telecom (DoT).

The revenue for the quarter is expected at Rs 10,650 crore as against Rs 10,673 crore in the preceding quarter, a marginal 0.2 per cent decline. Vi’s revenue are seen to be impacted amid continued decline in subscriber base. The desk estimates the company’s subscribers to fall  by 1 per cent sequentially. 

The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is expected to go up by 0.6% to Rs 4,375crore as against Rs 4,350 core reported in Q3FY24.  Similarly, EBITDA margins will likely see a growth of 30 bps QoQ to 41.1 per cent as against 40.8 per cent reported in the quarter-ended December.

Furthermore, ARPU or average revenue per user is expected to log a 1.4 per cent increase QoQ and come in at Rs 147 as against Rs 145.

Key monitorables

The investors will keep an eye on the management’s commentary on the Rs 25,000 crore fundraising plan. Further, outlook on 5G rollout will be tracked.