Vodafone Idea (IDEA) Q2 24/25 earnings summary

Executive summary

• Achieved INR 109.3 billion in quarterly revenue, up 4% sequentially, with customer revenues rising 5.6% due to July tariff hikes.

• Net loss for the quarter was INR 71.8 billion; net loss for the six months ended September 30, 2024, stood at INR 136.08 billion, with a negative net worth of INR 953.96 billion.

• Significant capital infusions through FPO and preferential allotments raised over INR 225 billion, including equity issued to vendors.

• Largest-ever 4G expansion with 42,000 new sites and 14% increase in 4G capacity; 4G coverage now reaches 1.05 billion people.

• Signed INR 300 billion ($3.6 billion) network equipment deals with Nokia, Ericsson, and Samsung to support a three-year CapEx plan of INR 500–550 billion.

Financial highlights

• EBITDA (ex-Ind AS 116) reached INR 23.2 billion, up 10.5% QoQ, with margin improving to 21.3%.

• Reported EBITDA (incl. Ind AS 116) was INR 45.5 billion, up 8.2% QoQ; margin improved to 41.6%.

• Depreciation and amortization expenses were INR 54 billion; net finance costs INR 63.1 billion.

• Total income for the quarter was INR 112.32 billion, with total expenses at INR 184 billion.

• Basic and diluted loss per share for the quarter was INR (1.03).

Outlook and guidance

• CapEx of INR 80 billion planned for H2 FY25, targeting 4G coverage of 1.1 billion by March 2025 and 1.2 billion by September 2025.

• 5G rollout to begin in key geographies in Q4 FY25.

• Management expects that recent capital infusions will support ongoing negotiations with lenders and vendors, and enable compliance with future obligations.

• Full impact of tariff hikes on ARPU and revenue expected over the next couple of quarters.

• The company anticipates the possibility of converting future spectrum and AGR installment shortfalls into equity, as per the Telecom Reforms Package.