AGR impact: Voda Idea posts biggest quarterly loss in India Inc history

AGR liability leads to pre-tax loss of Rs 36,959 crore.

Vodafone Idea revealed a gigantic pre-charge loss of Rs 36,959 crore for the July-September quarter after it accommodated installments identified with balanced gross incomes, or AGR. The organization endured a shot of Rs 30,774 crore (counting AGR) for the quarter. This prompted lost Rs 50,922 crore at the net level, the most noteworthy ever for an Indian organization. The organization had posted lost Rs 4,974 crore in the year-back quarter while the misfortune in the June quarter was Rs 4,874 crore.

Offering a reprieve up of the liabilities by virtue of AGR, the organization provisioned for Rs 27,610 crore because of permit expenses and Rs 16,540 crore, remembering interest and punishments for intrigue, identified with range utilization charges (SUC) up to September 30, 2019....Article Source : BS

Liabilities by virtue of AGR are Rs 25,678 crore. The gauge depends on requests got from Department of Telecommunications (DoT) and extra gauges.

While the organization has accommodated SUC, taking into account that no range is utilized for producing non-telecom pay, it is assessing the toll of SUC on such salary. The organization is documenting an appeal to survey the Supreme Court judgment of AGR.

AGR sway: Voda Idea posts greatest quarterly misfortune in India Inc history

Income from activities remained at Rs 10,844 crore, down 3.8 percent down from the last quarter. This was barely lower than the Bloomberg agreement evaluations of Rs 10,925 crore. The outcomes were affected via regularity and extreme floods in a large number of its key markets. On a year-on-year premise, income recouped by 41.5 percent.

Income before intrigue, expense, deterioration, and amortization (Ebitda) for the quarter diminished to Rs 3,347 crore, a successive decrease of 8.3 percent since lower income was somewhat counterbalanced by proceeded with cost cooperative energy acknowledgment. The supporter base sneaked past another 9 million during the quarter to 311.1 million with normal income for every client (ARPU) at Rs 107 contrasted with Rs 108 in Q1.

"The supporter beat keeps on improving, arriving at 3.5 percent in Q2FY20 contrasted with 3.7 percent in Q1FY20 and 7.2 percent in Q4FY19. During the quarter, net supporter augmentations have likewise expanded during the quarter," said the organization.