Vodafone Idea, a part of Aditya Birla Group, is engaged in telecom services and the trading of handsets and data cards.
The company’s stock closed at a price of Rs 7.10 on Monday and has a market capitalization of Rs 34,805 Crore.
In February 2023, in lieu of converting interest dues from deferred adjusted gross revenue (AGR) and spectrum auction payments, Vodafone Idea Ltd. approved the allotment of equity shares worth Rs 16,133 crore, or 33.44% to the Indian government, making it the company’s largest shareholder.
Kumar Mangalam Birla was appointed as a non-executive and non-independent director of the firm in April 2023. He holds a 32 percent stake in the business. Since April 2021, the firm has lost over 4.24 crore users. To address this, the company planned to launch 5G services by the end of June FY2023.
Having a future outlook for the company, CLSA research gave a ‘sell’ tag to the company with a target price of Rs 5 indicating a downside of 30 percent as compared to the current price levels.
The rationale behind giving such a recommendation is that company revenue and EBITDA were below estimates for the Q4 results, and the company has planned for fundraising to fully discharge its debt obligations.
As per consolidated financials, company operating revenues decreased from ₹10,620 crore in Q3 to ₹10,531 crore in Q4. Similarly, having a YoY comparison of the
By metrics, the revenues significantly increased from ₹ 38,515 crores during FY 21-22 to ₹ 42,177 crores in FY 22-23.
The net profits of the company, during the previous quarter, declined from loss of ₹7,990 crore in Q3 to a loss of 6,418 crore in Q4. For YOY comparison, PAT numbers have increased from a loss of ₹ 28,246 crores during FY 21-22 to loss of ₹ 29,301 crores in FY 22-23.
As per the latest shareholding pattern data for the March quarter, promoters hold a 50.36 percent stake in the company, and domestic institutional Institutional Investors (DIIs) hold a 33.72 percent stake in the company.
Written by Omkar C
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