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ICICI Securities Report
Vodafone Idea Ltd.'s Q1 FY21 adjusted cash Ebitda came broadly in-line with our estimates at Rs 15 billion.
However, Vodafone Idea's revenue dip of 9.3% has significantly underperformed peers Bharti Airtel Ltd. and Reliance Jio. The positives were steady Ebitda despite decline in revenue and accommodating higher data usage despite limited capex.
However, rising adjusted gross revenue liability is negative, which now stands at Rs 654 billion (versus Rs 580 billion in our base case).
In comparison, 4G subscribers and revenue market share continue to slide, however, Rs 40 billion planned addition cost optimisation measure should make up for some revenue market share loss.
Key data points of Vodafone Idea to look forward to: 1) staggered AGR payment of at least 15 years; and 2) significant tariff hike to drive higher cash flow for meeting rising liabilities.
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