Vodafone Idea Performance
Fundamentals of Vodafone Idea
|P/E Ratio (TTM)||NA|
|Debt to Equity||-2.65|
Financials of Vodafone Idea
|Dec 2022||Mar 2023||Jun 2023||Sep 2023|
|Profit before tax||-7,989.7||-6,423.6||-7,837||-7,920.2|
|EPS in Rs||-2.45||-1.52||-1.61||-1.79|
About Vodafone Idea
About Vodafone Idea Limited
Vodafone Idea Limited (VIL) provides pan India Voice and Data services across 2G, 3G and 4G platforms. Vodafone Group PLC entered India in 2007, acquiring 67% direct and indirect stake and loan interests in Hutchison Essar Limited from Hutchison Telecom. The company was listed on BSE and NSE in 2007 after an IPO.
Idea Cellular Ltd. and Vodafone Group Plc. agreed to a merger plan in August 2018. Vodafone India Ltd. and Vodafone Mobile Services Ltd. merged with Idea Cellular to establish Vodafone Idea Ltd. Following the merger, the Vodafone Group owned 45.2% of the company, and the Aditya Birla Group owned 26%.
In 2020, the Hon’ble Supreme Court upheld the view considered by the Department of Telecommunications (DoT) with respect to the definition of Adjusted Gross Revenue (AGR). The order confirmed the principal demand, levy of interest, penalty and interest on penalty, resulting in significant financial implications. In 2022, VI confirmed the computation of the Net Present Value (NPV) of the interest liability on the moratorium period amounting to ₹1,61,331 Mn towards AGR dues and deferred annual spectrum liabilities, respectively, as of January 2022.
On February 03, 2023, the DoT issued an order and directed VI to convert the loan representing NPV of the interest related to such deferment amounting to ₹1,61,331 Mn into Equity Shares. Subsequently, on February 7, 2023, VI’s Board approved the allotment of shares to the Government of India.
In 2018, the company won the WOW Campaign of the Year award for Enterprise Back Office Digital Transformation. In 2019, it won the Enterprise Mobile Service Provider for the Year award.
- Mobility Business: The group provides GSM-based Company provides GSM-based mobile telecommunications services in all 22 Service Areas of India. VI provides voice and non-voice services under this segment. The non-voice services include Data Services, digital services, and Other VAS Offerings such as sports (score updates), IVR-based content (Idea music station), and WAP-based games.
- Idea Mobile Banking Services: Under this segment, the services provided by the group include Prepaid Payment Instrument Business (PPI) and Payments Banks services through Aditya Birla Idea Payment Bank Limited (APIPBL), which received a banking license from RBI on April 3, 2017.
- Passive Infrastructure: The company provides passive infrastructure services under the segment through its towers and Indus Tower, a joint venture between Bharti Infratel Ltd., Vodafone India Ltd. and Idea Cellular Ltd. through its subsidiary Aditya Birla Telecom Ltd.
Vodafone Idea has the following subsidiaries:
As of March 31, 2023, the company had 10 subsidiaries and a few of them are listed below:
- Vodafone Idea Manpower Services Limited (VIMSL): It is engaged in the business of providing manpower services to Vodafone Idea Limited.
- Vodafone M-pesa Limited (VMPL): The company is a wholly-owned subsidiary of Vodafone Idea Limited. It is involved in the business of Prepaid Payment Instruments (PPI) and Business Correspondence. It provided customers with a mobile wallet and money transfer services in the form of M-pesa.
- Vodafone Idea Business Services Limited (VIBSL): The subsidiary is an outsourcing hub for back-end IT support, data centre operations and hosting services to VIL and its subsidiaries.
Akshaya Moondra, CEO
Akshaya Moondra is the Chief Executive Officer (CEO) of Vodafone Idea Limited (VIL). Before taking over as the CEO in August 2022, Akshaya served as the Chief Financial Officer (CFO) of VIL for a period of 4 years.
- In March 2019, the company announced a rights issue of ₹25,000 crore with a ratio of 87 shares for every 38 shares held. The record date for the right issue was April 2, 2019.
VIL is focused on long-term growth on the back of the strategies listed below:
- The company is focused on investments in network enhancement for better customer experience. For this, VIL would invest in 17 circles to improve competitiveness in priority markets.
- The business will focus on deploying 5G technologies like Cloudification of Core, DSR, Open RAN, etc.
- VIL will emphasise driving partnerships and digital revenue streams as digital services will likely provide room for notable growth.
- Diversified revenue stream fueling business sustainability.
- Possesses a competitive spectrum profile with 8,005.2 MHz of spectrum across various frequencies in FY 2023.
- Higher ADRs are limiting business growth.
- Highly leveraged business due to growing debt profile.
- Revenue opportunities in digital services due to the rising use of smartphones.
- Focus on business segregation in wired internet services.
- Highly exposed to competition from peers.
- Ongoing litigation could result in adverse business outcomes.
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What is the Share price of Vodafone Idea (IDEA)?
Can I buy Vodafone Idea (IDEA) shares?
How do I buy Vodafone Idea (IDEA) from Angel One?
- Direct investment: You can buy Vodafone Idea (IDEA) shares by opening a Demat account with Angel One.
- Indirect investment: The indirect method involves investing through ETFs and Mutual Funds that offer exposure to Vodafone Idea (IDEA) shares.
Is Vodafone Idea a Debt free Company?
No, Vodafone Idea is not a debt free company.
What is the main business of Vodafone Idea?
The main business of Vodafone Idea is to operate telecommunications in India by offering various services, including voice, enterprise services, data, and other value added services, such as short messaging services, Internet of Things (IoT), and digital services.
Who are the promoters of Vodafone Idea?
The main promoters of Vodafone Idea include Euro Pacific Securities Ltd, Grasim Industries Ltd, Prime Metals Ltd, Oriana Investments Pte Ltd, Prime Metals Ltd, Mobilvest, Vodafone Telecommunications (India) Limited, Trans Crystal Ltd., Elaine Investments Pte Ltd, Asian Telecommunications Investments (Mauritius) Limited, and Hindalco Industries Limited.
What are the Subsidiaries that comes under Vodafone Idea?
Some of the main subsidiaries that come under Vodafone Idea are Vodafone Idea Manpower Services Limited (VIMSL), Vodafone M-pesa Limited (VMPL), Vodafone Idea Business Services Limited (VIBSL), Vodafone Idea Communication Systems Limited (VICSL), Connect (India) Mobile Technologies Private Limited (CIMTPL), and Vodafone Idea Telecom Infrastructure Limited (VITIL).