New Delhi: The Union Cabinet on Tuesday gave its green signal to a bank guarantee waiver for spectrum auctioned since 2012. The decision comes a big win for Vodafone Idea which has been grappling hard due to its heavy dues. The Vodafone Idea share price surged around 18 per cent today morning.
The Cabinet provided relief to the telecom companies providing BG owed for buying spectrum up to 2022. DoT had favoured providing bank guarantees for telecom companies owed for buying spectrum.
Vodafone Idea, which is heavily debt-ridden due to hefty spectrum fees and adjusted gross revenue (AGR) dues, repeatedly appealed to the government to waive the bank guarantee (BG) requirement to ease its spectrum payment obligations.
In its Q2 Results 2024-25, Vodafone Idea reported its consolidated net loss went down to Rs 7,175.9 crore as compared to Rs 8,737.9 crore reported in the second quarter of 2023-24. The telecom company’s revenue from operations recorded a surge of 2.01 per cent year on year (YoY) to Rs 10,932.2 crore in the July-September quarter of 2024.
The company had posted a loss of Rs 8,746.6 crore in the same period a year ago.
The company’s financials mentioned that the consolidated revenue from services of Vodafone Idea (VIL) increased 1.8 per cent to Rs 10,918.1 crore during July-September quarter of FY25. It was Rs 10,714.6 crore in the second quarter of the previous financial year.
EBITDA for the second quarter of the current financial year was recorded at Rs 4,549.8 crore. It recorded a gain of 6.23 per cent as compared to Rs 4,282.8 crore recorded in the second quarter of 2023-24. EBITDA margin also showed improvement of 41.6 per cent in September 2024 quarter as compared to 40 per cent registered in the July-September quarter a year ago.
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Vodafone Idea share price surged on November 26, 2204 after the Union Cabinet gave in-principle approval for the debt-ridden telecom company’s bank guarantee issue. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
