Vodafone Idea Ltd’s profits increased marginally to ₹10,932 crore from ₹10,716 crore in the September quarter, while losses decreased to ₹7,175 crore from ₹8,746 crore in the same period last year. But the beleaguered telecom provider persisted in calling for additional industry-wide tariff simplification, pointing to the necessity of paying capital expenses.
Due to rate hikes implemented in June and the actual impact beginning in the September quarter, average revenue per user (Arpu), a crucial profitability metric, increased to ₹156 from ₹142 a year before and ₹146 in the previous quarter.
Vodafone Q2 Results
The company’s net loss increased from the June 2024 quarter’s ₹6,432 Crore to the current quarter. However, the recent hike in tariff pricing implemented by all telecom carriers was the primary driver of the 4% improvement in revenues for the current quarter. In comparison to the ₹4,283 crore reported in the same quarter last year, Vodafone Idea’s EBITDA for the current quarter grew to ₹4,550 crore. Excluding the effect of Ind AS 116, cash EBITDA climbed 10% from quarter to quarter to ₹2,320 Crore, the highest since the merger.
In Q2FY25, capex spending was ₹1,360 Crore, up from ₹760 Crore in the June quarter prior. ₹8,000 crore is the estimated capital expenditure for H2FY25.
From Rs 7,830 crore a year ago, Vodafone Idea’s debt from banks and financial institutions decreased by Rs 1,400 crore in a sequential manner and by Rs 4,580 crore annually to Rs 3,250 crore. As of September 30, the cash and bank balance was Rs 13,620 crore, down from Rs 18,150 crore in the first quarter.
During the quarter, the telco expanded its 4G coverage, but its data KPIs experienced a sequential decline. Its total data consumers (including all users of 2G to 5G services) decreased to 134.9 million (from 136.9 million in Q1), and its 4G subscriber base reduced to 125.9 million in Q2FY25 (from 126.7 million in Q1). Consequently, overall data usage decreased from 6,111 million MB in the previous quarter to 5,992 million MB in the September quarter. 15.76 GB of data were consumed per person, which is also less than the 15.96 GB consumed during the June quarter.
