Published 22:07 IST, November 14th 2019
Rs 50,921 cr in the red, Vodafone posts highest quarterly loss in recent Indian history
Hit hard by the unpaid statutory dues, telecom operator Vodafone Idea posted a colossal Rs 50,921 crore loss for the second quarter ended September 30.
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Hit hard by the unpaid statutory dues, telecom operator Vodafone Idea on Thursday posted a colossal Rs 50,921 crore loss for the second quarter ended September 30, and said it is in the process of filing a review petition on the adjusted gross revenue matter.
Vodafone reports highest loss in recent years
This is the highest ever quarterly loss posted by any Indian company in recent memory. Vodafone Idea said its ability to continue as going concern is dependent on obtaining relief from the government and positive outcome of the proposed legal remedy. The SC order on Adjusted Gross Revenue (AGR) matter "has significant financial implications for the industry", VIL said in a statement. Its total loss stood at Rs 50,921 crore in the September quarter, against Rs 4,874 crore loss in the year-ago period.
Its revenue rose 42 per cent to Rs 11,146.4 crore during the second quarter this year. The company has estimated liability of Rs 44,150 crore post the apex court order and made provision of Rs 25,680 crore in the second quarter this fiscal. Airtel, Vodafone Idea and other telecom operators have to pay the government a whopping Rs 1.4 lakh crore following the recent Supreme Court order that has sent shock waves through the industry which is already grappling with losses and billions of dollars in debt.
Supreme Court on revenue from telecom companies
The Supreme Court, last month, upheld government's position on including revenue from non-telecommunication businesses in calculating the annual AGR of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer. As per latest estimates by the telecom department, Bharti Airtel faces a liability of around Rs 62,187 crore (including share of Tata Group of companies and Telenor India), while Vodafone Idea may have to pay about Rs 54,184 crore. The remaining liability is with state-owned BSNL/MTNL and some of the shut/bankrupt telecom companies.
21:41 IST, November 14th 2019