Vodafone Idea Q1 Review - Fall In Earnings Continues; Needs Immediate Liquidity Support: Motilal Oswal
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Motilal Oswal Report
Vodafone Idea Ltd.'s adjusted Ebitda (excluding one-offs on pre Indian Accounting Standard 116) stood at Rs 12.8 billion versus Rs 17.1 billion QoQ.
This was attributed to the sharp subscriber churn due to the Covid-19 led lockdown and fall in average revenue per users.
With Ebitda (pre-Ind AS 116) of Rs 38.5 billion in H2 FY22E, it will be challenging to invest in growing Vodafone Idea's network and service upcoming repayments of:
Rs 64.7 billion non convertible debentures in FY22,
Rs 82 billion deferred spectrum payment, and
adjusted gross revenue installment.
A capital raise or government relief package remains critical to provide immediate liquidity support to service the ballooning net debt of Rs 1,907 billion (including AGR liabilities).
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