Vodafone Idea Stocks Plummet as Q3FY24 Results Disappoint Investors

Vodafone Idea's shares plunged on Tuesday following Q3FY24 results, which indicated only a marginal increase in revenue
Vodafone Idea EGM
Vodafone Idea EGM

Vodafone Idea's stocks remained flat during the morning trade session on Tuesday subsequent to reporting Q3FY24 results that fell short of expectations.

In the quarter ending December 2023, Vodafone Idea, the third-largest telecom company in the country (based on subscriber count), reduced its losses to Rs 6,986 crore from Rs 7,990 crore compared to the previous year.

The company generated revenue of Rs10,673 crore during the quarter under review, slightly up from Rs 10,620 crore in the corresponding period of the previous year. The revenue for the quarter marked a year-on-year increase of 0.5 per cent, supported by enhancements in the subscriber mix, additions of 4G subscribers, and adjustments in the entry-level plan.

At 10:30 am, the shares of the telecom firm were trading at a Rs 14.60 price level, down by almost a per cent on NSE.

In terms of reported figures, the EBITDA for the quarter witnessed a 4.1 per cent year-on-year growth, rising from Rs 4,180 crores in Q3FY23 to Rs 4,350 crores, with an EBITDA margin of 40.8 per cent for the quarter.

Akshaya Moondra, CEO, Vodafone Idea Limited, said in an exchange filing, “We are pleased to report highest EBITDA (pre-IndAS 116) of Rs. 21.4 billion in last 11 quarters. In line with the evolving industry landscape and changing customer needs, we have revamped our offerings as well as focusing on our execution to effectively compete in the market. Resultantly, we are able to grow our 4G subscribers and ARPUs consecutively for last 10 quarters. We remain engaged with various parties for fund raising, to make required investments for network expansion, including 5G rollout.”

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