ICICI Securities: Vodafone Idea Posts In-Line Q1 Results; Cash Flow Not Catching Up With Liabilities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Vodafone Idea Posts In-Line Q1 Results; Cash Flow Not Catching Up With Liabilities

ICICI Securities: Vodafone Idea Posts In-Line Q1 Results; Cash Flow Not Catching Up With Liabilities

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