Vodafone Idea has said that its ability to continue as a going concern depends on the Supreme Court giving it a favourable verdict in the adjusted gross revenue (AGR) matter.
The telecom company, which is estimated to have AGR-related dues of more than Rs 46,000 crore, posted a pre-tax loss of Rs 11,742 crore in fourth quarter FY 2020 due to one-off expenses. The result was announced late Tuesday night.
It has sought 20 years to clear the dues and said its survival depends the court verdict and successful negotiations with lenders. Vodafone Idea breached debt covenants as on March end, limiting its ability to generate fresh funds to settle its dues.
“We continue to actively engage with the government to provide relief on various industry related concerns,” the company said in its result statement.
The company reported flat revenue growth on a year on year basis. On a sequential basis, revenue rose 6 per cent to Rs 11754 crore due to tariff hike. The company’s subscriber base declined to 291 million in fourth quarter from 304 million in the previous quarter while average revenue per user improved to Rs 121 from Rs 109 in the same period.
“Our focus on rapid network integration, as well as 4G coverage and capacity expansion, has further improved customer experience. We thus continue to lead the league tables on 4G data download speeds across several states, metros and large cities. We have achieved our full opex merger synergy target. Despite the nationwide lockdown since March due to COVID-19, our teams across all circles continue to work effectively in these difficult times with support of the local authorities, to ensure seamless connectivity for our customers,” said the company’s managing director, Ravinder Takkar, in a statement.