- 15 Nov 2021
- ICICIdirect Research
Vodafone Idea: In line performance; fund raise key to stay competitiveIDEA - 6 Change: -0.10 (-1.53 %)
News: Q2FY22 performance was on expected lines. Given the tariff hike in the 2G and post-paid segment, the company witnessed QoQ ARPU growth which percolated to margins. Reported revenues were up 2.8% QoQ to Rs.9,406 crore. ARPU grew by ~5% QoQ to Rs.109, as the company had increased the entry level prepaid pricing plan from Rs.49 to Rs.79, in a phased manner, as well as increased the tariffs in some postpaid plans. The subscriber base decline was also controlled at ~2.4 million to 253 mn. Reported EBITDA margins was up 56 bps QoQ to 41.1%. The reported loss stood at Rs.7132 crore aided by lower interest and depreciation.
Views: The company needs to raise capital as early as possible to stay competitive. The potential delay in tariff hike is making things tougher for the company. We seek management commentary on fund raising.