Vodafone Idea Stock Rose
In the Friday trading, shares of telecom company Vodafone Idea are witnessing huge fluctuations. Shares of the company rose up to 17 per cent in intraday trading. But after some time, Vodafone Idea fell more than 5 percent. In fact, in the AGR case, the telecom companies have not got relief from the Supreme Court today. According to the media report, the court has also reprimanded the DoT for not charging AGR while rejecting all applications. At the same time, notice has also been issued for not taking action on the telecom companies. At present, the Supreme Court has today asked companies to deposit dues.
Today the Supreme Court was hearing a petition on telecom companies to set a new deadline for the payment of AGR of the government. In such a situation, the telecom companies were hoping that some relief from the court could be provided. This petition has been filed by Bharti Airtel, Vodafone Idea and Tata Teleservices. In the petition, these telecom companies have requested the court to give more time to pay the AGR dues. These companies have to pay the old statutory dues of Rs 1.47 lakh crore to the Department of Telecommunications.
Vodafone Idea owes Rs 53,038 crore
Vodafone Idea Ltd. (VIL) has a statutory arrear of Rs 53,038 crore. This includes spectrum arrears of Rs 24,729 crore and license fee of Rs 28,309 crore. The company had said recently that if it does not get relief, it will close its business. Vodafone Idea Chairman Kumar Mangalam Birla has already said that the company will be shut down if the government or the court does not provide relief. The majority stake in this is that of Vodafone Idea.
Today companies submit dues
According to media reports, the Supreme Court has asked the telecom companies to deposit the arrears today. The apex court had earlier ordered telecom companies to pay dues of Rs 1.47 lakh crore by 23 January 2020. The court rejected the petition of the companies reviewing the same order, saying that it did not show any ‘justifiable reason’ in it. The Supreme Court, in its judgment on October 24 last year, justified the argument of the Department of Telecommunications that the non-telecom income of telecom companies should also be included in government statutory liabilities.
6453.2 crore loss to Vodafone Idea
In the December quarter, Vodafone Idea incurred a huge loss of Rs 6,453.2 crore as against Rs 5,004.6 crore in the year-ago period. At the same time, revenue also fell by 5.7 percent to Rs 11,089.4 crore during the same period from Rs 11,764 crore a year ago. However, revenue grew 2.3 per cent on a quarterly basis, behind which the number of subscribers in 4G is to increase. EBITDA grew by 0.7 per cent to Rs 3,420 crore in the December quarter, while EBITDA margin increased to 11.6 per cent from 10.2 per cent. ARPU has improved and has increased from Rs 107 to Rs 109.