Vodafone deep in the red
Vodafone Idea Ltd (VIL) on Thursday reported a consolidated loss of Rs 6,438.8 crore as it continued to lose subscribers even as the telco had to make some provisions for the dues owed to the government following a Supreme Court judgment over adjusted gross revenue (AGR).
Though the loss is higher than the Rs 5,004.6-loss posted in the year-ago period, it is better than the consolidated loss of Rs 50,921.9 crore recorded in the preceding three months as Vodafone had to make huge provisions of Rs 25,680 crore owed to the government.
Vodafone’s numbers come amid reports that the Supreme Court will hear a modification petition on Friday filed by the telecom operators seeking more time to pay Rs 1.47 lakh crore in dues to the Centre.
A statement from Vodafone said that it had accounted for an estimated liability of Rs 44,150 crore related to licence fee and spectrum usage charges in the previous quarter, mainly based on the DoT demands received and estimation for periods for which demands had not been raised by the regulator till then.
The company added during this quarter, it adjusted the estimated liability for subsequent demands received, errors in computation, applicable interest for this quarter and payments made in the past not considered in the DoT demands. The net impact of these amounted to Rs 52.8 crore, which has been recognised as exceptional items.
The telco reiterated that material uncertainty exists that casts significant doubt on its ability to continue as a going concern.