The telecom firm reported a loss of Rs 7,319.1 crore for the first quarter of FY 2021-22 and its net debt was at Rs 1,906.7 billion
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var titStr=”;var editw=”; var typevar=”; var pparr= new Array(‘Monitoring your investments regularly is important.’,’Add your transaction details to monitor your stock`s performance.’,’You can also track your Transaction History and Capital Gains.’); var phead =’Why add to Portfolio?’; if(secglbVar ==1) { var stkdtxt=’this stock’; var fltxt=’ it ‘; typevar =’Stock ‘; if(lastRsrs.length>1){ stkdtxt=’these stocks’; typevar =’Stocks ‘;fltxt=’ them ‘; } } //var popretStr =lvPOPRHS(phead,pparr); //$ (‘#poprhsAdd’).html(popretStr); //$ (‘.btmbgnwr’).show(); var tickTxt =’‘; if(typparam1==1) { var modalContent = ‘Watchlist has been updated successfully.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //var existsFlag=$ .inArray(‘added’,newappndStr[1]); //$ (‘#toptitleTXT’).html(tickTxt+typevar+’ to your watchlist’); //if(existsFlag == -1) //{ // if(lastRsrs.length > 1) // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exist in your watchlist’); // else // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’); // //} } //$ (‘.accdiv’).html(”); //$ (‘.accdiv’).html(appndStr); } }, //complete:function(d){ // if(typparam1==1) // { // watchlist_popup(‘open’); // } //} }); }); } else { var disNam =’stock’; if($ (‘#impact_option’).html()==’STOCKS’) disNam =’stock’; if($ (‘#impact_option’).html()==’MUTUAL FUNDS’) disNam =’mutual fund’; if($ (‘#impact_option’).html()==’COMMODITIES’) disNam =’commodity’; alert(‘Please select at least one ‘+disNam); } } else { AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function pcSavePort(param,call_pg,dispId) { var adtxt=”; if(readCookie(‘nnmc’)){ if(call_pg == “2”) { pass_sec = 2; } else { pass_sec = 1; } var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .ajax({url:url, type:”POST”, //data:{q_f:3,wSec:1,dispid:$ (‘input[name=sc_dispid_port]’).val()}, data:{q_f:3,wSec:pass_sec,dispid:dispId}, dataType:”json”, success:function(d) { //var accStr= ”; //$ .each(d.ac,function(i,v) //{ // accStr+=”+v.nm+”; //}); $ .each(d.data,function(i,v) { if(v.flg == ‘0’) { var modalContent = ‘Scheme added to your portfolio.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //$ (‘#acc_sel_port’).html(accStr); //$ (‘#mcpcp_addportfolio .form_field, .form_btn’).removeClass(‘disabled’); //$ (‘#mcpcp_addportfolio .form_field input, .form_field select, .form_btn input’).attr(‘disabled’, false); // //if(call_pg == “2”) //{ // adtxt =’ Scheme added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //else //{ // adtxt =’ Stock added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //$ (‘#mcpcp_addprof_info’).css(‘background-color’,’#eeffc8′); //$ (‘#mcpcp_addprof_info’).html(adtxt); //$ (‘#mcpcp_addprof_info’).show(); glbbid=v.id; } }); } }); } else { AFTERLOGINCALLBACK = ‘pcSavePort(‘+param+’, ‘+call_pg+’, ‘+dispId+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function commonPopRHS(e) { /*var t = ($ (window).height() – $ (“#” + e).height()) / 2 + $ (window).scrollTop(); var n = ($ (window).width() – $ (“#” + e).width()) / 2 + $ (window).scrollLeft(); $ (“#” + e).css({ position: “absolute”, top: t, left: n }); $ (“#lightbox_cb,#” + e).fadeIn(300); $ (“#lightbox_cb”).remove(); $ (“body”).append(”); $ (“#lightbox_cb”).css({ filter: “alpha(opacity=80)” }).fadeIn()*/ $ (“#myframe”).attr(‘src’,’https://accounts.moneycontrol.com/mclogin/?d=2′); $ (“#LoginModal”).modal(); } function overlay(n) { document.getElementById(‘back’).style.width = document.body.clientWidth + “px”; document.getElementById(‘back’).style.height = document.body.clientHeight +”px”; document.getElementById(‘back’).style.display = ‘block’; jQuery.fn.center = function () { this.css(“position”,”absolute”); 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Vodafone Idea share price continued the fall for the second day on August 17 after the embattled telecom firm reported a loss of Rs 7,319.1 crore for the first quarter of FY 2021-22.
The share was quoting at Rs 5.89, down Rs 0.08, or 1.34 percent, on the BSE after falling more than 5 percent in the previous session.
Vodafone Idea on August 14 said its total debt was Rs 1.91 lakh crore. This comprises deferred spectrum payment obligations of Rs 1,060.1 billion and AGR liability of Rs 621.8 billion that are due to the government. It owes banks and financial institutions Rs 234 billion. Cash and cash equivalents were Rs 9.2 billion and net debt stood at Rs 1,906.7 billion.
Here is what brokerages have to say about the stock and the company after the June quarter earnings:
CLSA | Rating: Underperform | Target: Cut to Rs 6 from Rs 10
CLSA has maintained its “underperform” rating and cut FY22-23 forecasts by 5-12 percent.
The debt burden is huge at $ 25.8 billion and it is headed for a financial crisis when annual payments are due.
Credit Suisse | Rating: Underperform | Target: Cut to Rs 4 from Rs 6
Credit Suisse kept its “underperform” call as it was an all round weak quarter. The company is awaiting government support. It needs meaningful capital infusion and strong operational improvement to become competitive.
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UBS | Rating: Neutral | Target: Rs 10
UBS remained neutral on the stock as the subscriber market share loss continues and COVID adds to its woes.
The company remains in a critical position in terms of liquidity. The FY22 cash flows are not sufficient to meet upcoming repayment obligations. However, progress in the fundraising exercise and potential relief package from the government is the key.
Motilal Oswal | Rating: Neutral | Target: Rs 5
The fall in subscribers and subsequently revenue is disproportionately hurting EBITDA due to the high fixed cost nature of the business, with inflationary cost increases. This is making any tariff hike difficult to fill the gap of cash requirements.
The management said it is in discussion with potential investors for the stated Rs 250 billion fundraise but the timeline remains unclear.
The only silver lining, as the management indicated, is the recovery in its subscriber base after the lifting of the lockdown in June 2021.
The share touched a 52-week high of Rs 13.80 on January 15, 2021 and a 52-week low of Rs 4.55 August on 5, 2021. It is trading 57.32 percent below its 52-week high and 29.45 percent above its 52-week low.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
