Vodafone Idea Q1 Preview: Voda Idea's fundraising plans and commentary on average revenue per user (ARPU) trajectory ahead will remain key monitorable for experts and investors alike
Debt-laden Vodafone Idea may have narrowed its net loss during the April-June quarter of FY22 (Q1FY22), expect analysts, as subscriber churn remained contained, and amid marginal blow to revenue.
The telecom services provider, which is set to report its Q1 earnings on Saturday, August 14, had incurred a massive loss of Rs 25,460 crore in the year-ago period (Q1FY21) and Rs 7,022.8 crore in Q4FY21 (March quarter of FY21).
That said, fundraising plans and commentary on the average revenue per user (ARPU) trajectory ahead will remain key monitorable for experts and investors alike.
“We continue to highlight that a fund-raising announcement and government support are crucial for the survival prospects of the company, especially considering cash and cash equivalents of just Rs 350 crore at FY21-end,” highlighted analysts at Emkay Global in a pre-result report.
Here’s what key brokerages expect:
ICICI Direct
The brokerage is baking in nearly 4 million customer exits on a quarter-on-quarter (QoQ) basis, compared with 2 million exits in Q4FY21, as subscriber addition would have been hit given the lockdown impact amid Covid second wave. That said, the churn may have been limited due to the completion of network integration, it says.
“We expect overall revenues to decline 4 percent QoQ at Rs 9,216 crore from Rs 9,607.6 crore while Ebitda has pegged at Rs 3,830 crore, down 13 percent QoQ from Rs 4,408.7 crore, as Q4FY21 had one-off cost-benefit of Rs 450 crore,” the brokerage said. Reported margins are expected at 41.6 per cent, down 430 bps QoQ.
Revenue and Ebitda (earnings before, interest, tax, depreciation, and amortization) in the previous-year period were Rs 10,659.3 crore and Rs 4,098.4 crore, respectively.
Overall, the company is expected to post a net loss of Rs 6,674 crore.
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