Vodafone Idea shares slip 2% ahead of Q2 results today

Shares of Vodafone Idea slipped 2.2% to an intraday low of Rs 7.50 on the BSE today ahead of the company’s second quarter results, which are due later in the day today, wherein the telco is expected to narrow its consolidated losses for the quarter ended September 2024. Meanwhile, its revenues are likely to show marginal growth.

Net losses for the quarter may narrow in the range of Rs 6300-6400 crore, according to estimates from three brokerages. Revenues are seen rising 5% year-on-year in the September quarter.

On a sequential basis, analysts expect the telco to report decent growth in revenues, operating profit and ARPU (Average revenue per user).


ARPU for the quarter may improve quarter-on-quarter to anywhere between Rs 156 and 159, while the subscriber base is expected to further decline by 4 million.

Motilal Oswal expects a 5% QoQ revenue growth as the tariff hike benefit is partly offset by continued subscriber declines. "Expect reported EBITDA to grow 5% QoQ with EBITDA margin expanding 30bp QoQ to 40.3%," the brokerage said.
Vodafone Idea Q2 Preview: Losses to narrow; ARPU to improve on tariff hikes

Kotak Equities is modeling a EoP subscriber base to decline by 2 million QoQ to 208.1 million, while it estimates ARPU to increase 9% QoQ to Rs 159/month on tariff hikes and continuing subscriber mix improvements.

"We estimate revenue growth of 9.6% QoQ, backed by elevated ARPU. EBITDA margins to expand by 430bps QoQ. Key monitorables: plans to increase network capacity and arrest subscriber decline," another brokerage Nuvama said.

Vodafone Idea had said the recent tariff intervention is a step in the right direction for the industry to move towards better return on investment, as also to improve cash generation to support the large investment requirements.

In the preceding June quarter, the company narrowed its losses to Rs 6,432 crore as against Rs 7,675 crore reported in the preceding March 2024 quarter and Rs 7,840 crore in the June 2023 quarter.

Revenue from operations in the first quarter declined marginally year-on-year by 1.38% to Rs 10,508 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)