Vodafone Idea shares have reportedly dropped by 15% by March have reported a loss of Rs.7000 crores in the first quarter of 2021. In such circumstances Vodafone has a dire need of cashflow and requires immediate investors just to survive this financial year.
Today in the afternoon the stoke prices of Vodafone plummeted further by 9.4% leaving them at Rs.9.2 in addition to all this high depreciation, amortization and finance costed Vodafone a further 12% depreciation in revenue.
A Brokerage Credit business firm stated “High depreciation and amortization charge and finance costs meant the company continued to report PBT losses (excluding one off gains or losses). Additionally, company also recognized impairment loss of Rs7.2 billion on the Vodafone brand following the launch of integrated brand (V!).”
Vodafone Idea currently requires heavy financial backing but in the present scenario they have less than adequate cashflow along with severely depreciated revenue and sunk in huge amounts of debt which has led them to a loop of under-investment and share market loss.
CLSA stated Vi with $24 billion in debt, of which 88% is for spectrum and AGR, is headed for a financial crisis in FY23 when annual payments towards spectrum and AGR become due”.
Last year in September Vodafone PLC and Aditya Birla Group had announced a Rs.25000 crore fund injection plan into the telecom company but however nothing has been finalized despite holding several top-tier investors across the group.
