Shares of Vodafone Idea tanked 15 per cent to Rs 8.46 on the BSE in Thursday’s intra-day trade after the company reported a weak operational performance in the March quarter (Q4FY21). The stock is part of the future and option (F&O) segment, and such stocks don’t have circuit limits.

The stock erased partial losses and was down 6 per cent at Rs 9.32 on the BSE around 9.40 am, as against a 0.03 per cent gain in the S&P BSE Sensex. A combined 350 million shares had changed hands on the counter on the NSE and BSE at the time of writing this report.

In Q4FY21, Vodafone Idea reported a net loss of Rs 7,023 crore against Rs 4,532 crore in the previous quarter (Q3FY21). Average Daily Revenue (ADR), adjusted for Interconnection Usage Charge (IUC) impact, was flat quarter-on-quarter (QoQ).

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Vodafone Idea said the cost optimization underway with a target to achieve Rs 4,000 crore annualized OPEX savings by December 2021. It gained around 65 per cent of targeted OPEX efficiency on a run-rate basis. On fundraising, the company is currently in an active discussion with potential investors, it said.

Meanwhile, the company’s net debt stood at Rs 1.8 trillion as of March 2021, higher than Rs 1.17 trillion in the previous quarter, while its net worth stood at a negative Rs 38,228 crore, as against a negative Rs 31,243 crore in the December 2020 quarter. The sharp increase in debt is because Vodafone had recognized Adjusted Gross Revenue (AGR) dues of some Rs 60,000 crore as debt. The same wasn’t treated as debt in Q3FY21.

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Vodafone Idea Ltd-View Detailed Analysis