Vodafone Idea Ltd. shares rose as much as 2.9% to Rs 13.30 on Tuesday after the telecom operator reported higher revenue, Ebitda and average revenue per user for the June quarter. The stock was trading at Rs 13.10, up 1.47%, at around 10:10 a.m.
Revenue rose 3% sequentially to Rs 11,689 crore from Rs 11,332 crore, while Ebitda increased 3% to Rs 5,034 crore from Rs 4,889 crore. The Ebitda margin remained unchanged at 43.1%.
Vodafone Idea (Q1, Consolidated QoQ)
- Revenue up 3% at Rs 11,689 crore versus Rs 11,332 crore.
- Ebitda up 3% at Rs 5,034 crore versus Rs 4,889 crore.
- Ebitda margin at 43.1% versus 43.1%.
- Net loss at Rs 3,754 crore versus net profit of Rs 51,970 crore.
- ARPU up 1.7% at Rs 177 versus Rs 174.
The company said ARPU growth was helped by one additional day in the quarter, while revenue growth was led by its non-mobile business.
Non-Mobile Business Leads Growth
Mobile business revenue grew 1.8% sequentially, while the non-mobile business, comprising volatile and wholesale operations, grew 14%.
Subscriber growth remained largely muted, with mobile subscribers declining, according to the TRAI report referenced in the material.
Cash Ebitda remained stable at Rs 2,475 crore, while net debt was broadly unchanged at Rs 1,53,200 crore. Capital expenditure declined to Rs 1,930 crore from Rs 2,294 crore in the previous quarter.
JPMorgan On Vodafone Idea
JPMorgan retained its 'underweight' rating on Vodafone Idea with a target price of Rs 9.
The brokerage said net subscriber additions returned to positive territory for the first time since the merger. It said ARPU growth was helped by seasonality, including one additional day in the quarter.
JPMorgan said bank funding remains crucial for the company. It also noted that capital expenditure declined 16% sequentially and came in below its estimates.
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