Breaking Down Vodafone Idea's Q4 Results: What You Need to Know

Date : 29/05/2023
Read: 3 mins

Want to know the latest Q4 results of Vodafone Idea? Discover how the telecom giant fared with narrowed losses and a dip in subscribers. Learn what this means for the company and its customers.

Q4 loss decreases to Rs 6,419 crore.
Revenue grows by 3% to Rs 10,532 crore.
Average revenue per user remains steady at Rs 135.
4G subscriber base grows to 122.6 million.

Telecom giant Vodafone Idea (VI) has released its Q4 results for the March quarter, revealing a mixed bag of financial performance. While the company saw a slight increase in revenues, it also reported a dip in subscribers count, which remains a concern. On the positive side, net losses reducing down from the previous year, indicating some progress in the company's financial health. However, the VI share price has not been performing well in recent times, with a decline of almost 12% in 2023 so far and over 18% in the past year. In this article, we will take a closer look at VI's Q4 results and what they mean for the company and its investors.

Vodafone Idea's performance in the March quarter: revenues, operating margins, subscriber count decline, narrowed net losses. Let's decode!

Share price of Vodafone Idea

Source: https://in.investing.com/

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Understanding Q4 Results of Vodafone Idea

Vodafone Idea (VI) witnessed a slight decrease in loss for the quarter ending March 31, 2023, amounting to Rs 6,419 crore, compared to Rs 6,563 crore in the corresponding period last year.
In Q4FY23, the company's revenue increased by 3% to Rs 10,532 crore compared to Rs 10,240 crore in Q4FY22.
Company's average revenue per user remained steady at Rs 135 in the March quarter, compared to Rs 124 in the same period last year and Q3FY23.
Following the merger, VI achieved its first-ever annual revenue growth in services. The company's revenue increased by 9.4% to Rs 42,133.9 crore compared to Rs 38,489.5 crore in the previous year.
VI spent Rs 560 crore on capital expenditures in the quarter, bringing the total for FY23 to Rs 3,360 crore.
Vodafone Idea's gross debt reduced to Rs 2,09,260 crore on March 31, 2023, from Rs 2,22,890 crore on December 31, 2022. The reason for the decrease was the conversion of interest and AGR dues into equity that was issued to the government.
In the March quarter, the operator's 4G subscriber base grew to 122.6 million, up from 121.6 million in the December quarter.
During the fourth quarter, the company's EBITDA was Rs 4,210 crore, down from Rs 4649 crore in the same quarter of the previous fiscal year.

Akshaya Moondra, CEO of Vodafone Idea, expressed satisfaction with the company's performance, stating that they are pleased to report annual revenue growth for the first time post-merger, which is a result of consistently improving performance over the last several quarters.

Vodafone Idea is in talks with its lenders to raise additional debt funds and with other parties for equity-linked or equity fundraising to finance network expansion, including the rollout of 5G technology.

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VI's Q4 results show mixed financial performance, with revenue increase and subscriber count dip. Net losses reducing down, but share price has not been performing well. The company is in talks with lenders and investors to raise funds. Overall, the outlook for VI is positive, but there are still some challenges to overcome.