Tag: vodafone idea

The Indian benchmark indices started on a positive note today(11th January 2022) extending the previous session's strong rally. The BSE Sensex was up over 174 points at 60,570, and the NSE Nifty was at 18,047, higher by 44 points. In the broader market, the BSE MidCap and SmallCap indices were also in the green zone and were up 0.2 and 0.6 percent, respectively. Among the Sensex-30 constituents, HDFC, NTPC, Ultratech Cement, PowerGrid, Sun Pharma, HUL, IndusInd Bank, Bajaj Finserv, Titan, and Dr. Reddy's were the top gainers, up between 0.4-1.6 percent. On the Nifty, Grasim, Tata Consumer, Shree Cement were the additional gainers. Meanwhile, Tata Steel, Bajaj Finance, Asian Paints, M&M, Kotak Bank, L&T, ICICI Bank, SBI, and Axis Bank were the top losers, down 0.3-4 percent on the BSE. Read more

Shares of telecom service providers gained up to 7 percent on the BSE in today’s(1st Nov.2021) intra-day trade after RJio launched the much-awaited JioPhone Next. Jio Platforms (“Jio”), a majority-owned subsidiary of Reliance Industries (RIL). JioPhone Next will be made available from November 4. The device is priced at Rs 6,499. However, the company is offering customers EMI options starting at Rs 300 per month with a down payment of Rs 1,999. According to ICICI Securities, the pricing per se is not disruptive given the slew of smartphones already available in the Rs 5,000-7,000 range as well as the current mix of Rs sub 3,000 phone and sub Rs 100 ARPU paid by existing lower strata of 2G users. “We expect Jio move to target ARPU up gradation as well as retention of its own existing low-cost JioPhone users,” the brokerage firm said in a note. Read more

Today (17th Sept.2021) financial stocks, along with RIL, ITC, and Tata Steel, fired upon the bourses, lifting Indian benchmark indices to fresh all-time highs. The BSE Sensex index hit a new pinnacle of 59,551 in early deals, up 400 points, while the Nifty50 claimed 17,747, up 118 points. Bajaj Finance (up 2.7%), SBI, ITC, Bajaj Finserv, Bharti Airtel, Kotak Bank, Maruti Suzuki, and Titan were the top gainers on the 30-share pack. Sectorally, the Nifty PSU Bank index jumped 1%, followed by the Nifty Bank index (0.8%) and the Nifty Financial Services (0.7%). Shares of Vodafone Idea continued their upward movement and were up 10 percent at Rs 12.37 on the BSE in the intra-day trade today. The stock has zoomed 39 percent in the past two trading days after the government announced a relief package for the telecom sector.

Vodafone Idea (V I) is hopeful of government support in generating reasonable returns on its investment and addressing the challenges plaguing the telecom sector, the company’s chairperson Himanshu Kapania said in a letter to shareholders. Kapania took over from Kumar Mangalam Birla on August 4, days after the Supreme Court rejected its application for a correction in the calculation of adjusted gross revenue dues. The telecom company’s operational performance has been impacted by intense competition, low tariffs, and a debt of Rs 1.9 trillion leaving it with a little surplus for network upgrade. The company has sought an additional one-year moratorium on spectrum dues and is pitching for a decision on floor price for telecom. Read more

If the government wants to work on the survival of the Vodafone Idea it will have to make substantial payments, as well as forego revenues in FY’23, because it will have to extend the same incentives to the entire telecom sector. According to estimates, the industry has to spend around Rs 21,000-Rs 25,000 crores for spectrum which it bought on a deferred payment basis. Vodafone Idea has asked for a moratorium for another year (FY23). If granted, the government will have foregone the installment payout for the third year in a row as it has already provided a moratorium for two years, giving telcos Rs 42,000 crore worth of relief. However, the payouts will be adjusted with interest for the remaining years of the staggered payment (16 years) scheme and this remains unchanged. Read more

Shares of Vodafone Idea tanked 15 percent to Rs 8.46 on the BSE in Thursday's intra-day trade after the company reported a big loss of Rs 7,023 crore during January-March quarter as against Rs 4,532 crore in the previous quarter (Q3FY21). The revenues declined sharply by nearly 12% on a quarter-on-quarter basis to Rs 9,608 crore, much below analyst expectations of Rs 10,040.50 crore. Ebitda (earnings before interest, tax, depreciation, and amortization), however, increased 2.8% sequentially to Rs 4,408 crore. Ebitda margins came in at 45.9%, a sharp increase of 660 basis points quarter-on-quarter.The company’s average revenue per user (Arpu) during the quarter declined to Rs 107 compared with Rs 121 in the preceding quarter. Average data consumption, however, rose to 13,068 MB against 12,288 MB in the previous quarter. Read more

A delay in tariff hike by telecom services providers Bharti Airtel, Vodafone Idea (Vi), and Reliance Jio (a subsidiary of Reliance Industries) has not yet turned analysts cautious on the sector. On the contrary, the underperformance of Bharti Airtel and Vi at the bourses, relative to the benchmark S&P BSE Sensex and S&P BSE Telecom indices on a year-to-date (YTD) basis, can be used as an opportunity to enter these stocks from a long-term perspective, analysts say. So far in the calendar year 2021 (CY21), the stock of Bharti Airtel has risen 2.8 percent on the BSE while Vi has declined 8 percent. Peer firm Reliance Industries’ stock that now is seen by analysts as a play both on telecom and oil, on the other hand, has risen 3.2 percent, ACE Equity data show. In comparison, Sensex and BSE Telecom indices are up 2.9 percent and 4 percent, respectively during the period. Read more

The deadline for exclusive talks between Vodafone Idea and a foreign lenders’ consortium led by Oak Hill Advisors for finalising the terms of a $2-billion credit line for the telco has been extended to February 28 from January 31, according to some sources. “The lock-in for exclusive talks has been extended as lenders are keen to close the deal but also want some safeguards and business milestones in place to protect their potential investments, especially as Vi’s financial struggles seem far from over as it continues to lose revenue and users,” according to the sources.

Verizon Communications Inc(US wireless carrier) and Amazon.com Inc may invest more than $4 billion for a stake in India's Vodafone Idea Ltd, the Mint newspaper reported today (3rd Sept.2020), sending shares of Vodafone Idea up 10 percent. Vodafone Idea's stake-sale talks had been paused pending the outcome of a court hearing in India, which created uncertainty and could have threatened Vodafone Idea's survival, Mint reported, citing two unnamed people aware of the negotiations. But Amazon and Verizon are set to resume discussions following a Supreme Court ruling on Tuesday which gave mobile carriers 10 years to settle government dues.