Vodafone Idea Q2 Review - Fund Raise Expected By End-FY22: ICICI Securities
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ICICI Securities Report
Vodafone Idea Ltd.’s Q2 FY22 cash Ebitda at Rs 15.6 billion was higher than in Q1 FY22 excluding one-off gains in both the quarters. However, falling total subs and flat data subs are not encouraging.
Though the telecom relief package has stalled payments to be made to government, and helped Vodafone Idea meet its other obligations, it is still short of funds to incur capex in the absence of equity infusion.
Bharti Airtel Ltd. and Reliance Jio are incurring capex to increase coverage / capacity leaving a significant catch-up to be done by Vodafone Idea.
The company remains hopeful of fund raise by end-FY22 and expects tariff hike to come soon, which should provide the much-needed cash for investment.
Our estimates and target price remain under review as we await clarity on Vodafone Idea’s strategy.
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