The telco though once again warned that its ability to continue as “a going concern” depended on its successful negotiations with lenders and its ability to generate the cash flow that it needs to settle or refinance its liabilities and guarantees as they fall due.
” While we continue to face Covid-19 induced challenges, Q2FY21 showed signs of recovery with a gradual improvement in economic activities. We are executing on our strategy and our cost optimization exercise has already started to yield incremental savings,” said Ravinder Takkar, MD & CEO, Vodafone Idea said in a statement Thursday.
The telco said its revenue was up 1.2 per cent QoQ to Rs. 10,790 crore, as the impact of nationwide Covid-19 lockdown has gradually started to ease. Revenue for the previous quarter was Rs 10,659 crore.
“We have also initiated a fund raising exercise to support our strategic intent. Further, we continue to interact with the government seeking long term solutions to the critical challenges, which the industry faces.” Takkar added.
The telco’s board had earlier approved raising Rs 25,000 crore through a mix of equity and debt to upgrade its network, take on Reliance Jio and Bharti Airtel and to meet its statutory adjusted gross revenue (AGR) dues, with payouts including interest estimated at upwards of Rs 7,000 crore annually for 10 years, starting March 2021.
The telco saw its average revenue per user (ARPU) increase to Rs 119 from Rs 114 in the previous quarter, an impact of December and more subscribers moving up the tariff plans as data consumption increases. Rival Bharti Airtel posted an ARPU of Rs 162 while Jio’s results will be announced on Friday.
However subscriber fall remains a problem area for the telco, since its base declined to 271.8 million in Q2FY21 from 279.8 million in Q1FY21.
However, the gross additions improved with gradual reopening of retail stores.
“The subscriber churn increased to 2.6 per cent (vs 2.0 per cent in Q1FY21), as the market activity increased during the quarter with lifting up of restrictions,” it added.