Tag: Vodafone-Idea

Route Mobile expects $100 million revenue from Vodafone Idea deal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Route Mobile, a leading cloud communication platform provider, has won a large deal Vodafone Idea deal which goes live on April 1 and Route is positive on generating $100 million in revenue from this deal.

Speaking to CNBC-TV18, Rajdip Gupta, MD & Group CEO of Route Mobile said, “It can be more than $100 million because Vodafone Idea has almost 200 million subscribers in India right now. The number of OTT transactions are increasing day by day, and because of that we believe these number of large OTT players, they are definitely going to spend more, and indirectly, Route Mobile is going to get an advantage of being an exclusive partner with Vodafone Idea. So we are looking at $100 million for sure, but it may be more also.”

The company is excited about TruSense, a digital fraud detection product launched at the Mobile World Congress 2024.  Gupta noted that the digital adoption across the global market is also growing multi-fold and people are not talking much about digital fraud.

An increase in digital transactions also means a spike in digital frauds. There are very few companies on products to prevent frauds, and Route Mobile is one of them, he stated. “We want to mitigate the risk of digital fraud by offering our API’s to enterprise customers,” he added.

Regarding the market opportunity for TruSense, Gupta projected a substantial figure, aiming for revenue between $10 to $15 million in the upcoming year.

In Q3FY23, the company had lowered its full-year growth guidance to 15-17% from 20-25% because some of its OTT clients were cutting back on their spending.

The Mumbai-based company has a market capitalisation of ₹10,055.27 crore. Its shares have risen 19% over the last year.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea fund raise plan unlikely to include funding from Hindalco, Grasim: Exclusive

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vodafone Idea’s fund raising plan is unlikely to include funding from either of Aditya Birla Group’s listed entities – Grasim or Hindalco, two independent sources with direct knowledge of the matter told CNBC-TV18. The company’s board is set to meet on Tuesday, February 27 to consider the fund raising proposal.

Sources are suggesting that the Aditya Birla Group, the promoter entity, is likely to participate in the fund infusion via a preferential issue of shares.

The debt-laden telecom firm has been struggling to raise capital for the last few years and sources indicate that the management is planning a large fund raise which is likely to be completed in the next few months.

The funds raised will mainly be used to meet Vodafone Idea’s capital requirements to pay government dues, capex for network expansion and for 5G investments.

“The promoter’s decision of infusing capital is likely to inspire confidence in the investors.” A source indicated. On August 14, Vodafone Idea had mentioned that the promoter group will infuse ₹2,000 crore in the telecom operator if required. The management had later clarified that the fund infusion is likely to be completed by the end of the December quarter.

Aditya Birla Group or Vodafone Idea’s spokespersons were unavailable for comment on CNBC-TV18′s queries regarding the fund raising plans.

Sources indicate that the Aditya Birla Group had emphatically clarified to investors that the recently concluded rights issue of Grasim will not be used for any funding requirement of the telecom business.

Analysts had speculated that Hindalco’s large fund raise via the US listing of wholly-owned subsidiary Novelis may be used for group’s funding requirement but sources clarified that it will not be used for infusion of funds into Vodafone Idea.

Shares of Vodafone Idea are at the lowest point of the day, currently trading 2.3% lower at ₹17.15.

Also Read: Exclusive | Hindalco expects $15 billion valuation for Novelis in a billion dollar IPO

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea narrows Q3 losses to ₹6,986 crore, adds over 4 million 4G subscribers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Telecom operator Vodafone Idea Ltd (VIL) on Monday (January 29) reported a net loss of ₹6,985.9 crore for the third quarter that ended December 31, 2023. In the corresponding quarter last year, Vodafone Idea posted a net loss of ₹7,990 crore, the company said in a regulatory filing.

The company’s revenue from operations increased 0.49% to ₹10,673 crore against ₹10,621 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA increased 4.1% to ₹4,180 crore in the third quarter of this fiscal over ₹4,350 crore in the corresponding period in the previous fiscal.

The 4G subscriber base continued to grow for the tenth successive quarter and stood at 125.6 million as of December 31, 2023, against 121.6 million in Q3FY23, an addition of 4.1 million 4G subscribers.

The overall subscriber base stood at 215.2 million. ARPU (average revenue per user) improved to ₹145, up 7.4% on a year-on-year basis against ₹135 in Q3 of FY23, primarily aided by a change in the entry-level plan and subscriber upgrades. The total data traffic for the quarter witnessed a year-on-year growth of 4.2%.

The company is in discussion with various technology partners for finalisation of its 5G rollout strategy and is working with many partners to develop 5G use cases relevant to the Indian market and build device ecosystems. Also, Vodafone Idea is in the advance stage of 5G trials of embracing new technologies such as vRAN & ORAN.

Depreciation & amortisation expenses and finance costs (net) for the quarter are ₹5,600 crore and ₹6,490 crore, respectively. Excluding the impact of Ind AS 116, the depreciation & amortisation expenses and finance costs for the quarter stood at ₹4,120 crore and ₹5,580 crore, respectively. Capex spending for the quarter stood at ₹330 crore and capex for the first nine months at ₹1,300 crore.

The total gross debt (excluding lease liabilities and including interest accrued but not due) as of December 31, 2023, stood at ₹2,14,960 crore, comprising deferred spectrum payment obligations of ₹1,38,240 crore and AGR liability of ₹69,020 crore that are due to the government; debt from banks and financial institutions of ₹6,050 crore; and optionally convertible debentures amounting to ₹1,660 crore.

The results came after the close of the market hours. Shares of Vodafone Idea Ltd ended at ₹14.70, up by ₹0.090, or 0.62%, on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Byju’s FY22 net loss is the third biggest for the year after Vodafone and Tata Motors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With burgeoning losses, Byju’s, once ranked among the most valuable startups in the country, is now finding itself at the bottom of the ladder. At a loss of ₹8,245 crores in FY22, the ed-tech company is not only the largest loss-making startup but also featured among the highest loss-making companies in India.

According to Bloomberg data, telecom operator Vodafone Idea had reported the highest loss of ₹28,245 crore in FY22, which was followed by Tata Motors, with a net loss of ₹11,441 crore. While Tata Motors returned to profit in FY23 by posting a bottom line of ₹2,414 crore, Vodafone Idea’s losses increased by ₹1,056 crore during the year.

Source: Bloomberg, Company

After a delay of 22 months, Byju’s on Tuesday disclosed its financials for FY22. While the losses nearly doubled during the year, the revenue went up to ₹5,298 crore in FY22 from last year’s ₹2,428 crore. The management attributes the recent acquisitions — Whitehat Junior & Osmo — for the record losses in FY22.

According to them, the new business contributed 45% or Rs 3,800 crore to the total loss. Moreover, the finance cost also swelled to Rs 519 crore in FY22 against Rs 62 crore reported a year ago. What is more worrying is the auditors’ remark on the company’s ability to remain a going concern.

Apart from accumulated losses, the company also faces some ongoing litigations with respect to a $1.2 billion term loan availed by Byju’s Alpha Inc., a step-down subsidiary, where the parent firm is a guarantor.

“These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern,” wrote the auditor in its report.

The deteriorating financial also took a knock on its sky-high valuations. According to data sourced from tracxn.com, the beleaguered education provider is currently valued at $1 billion, which is down from $22 billion seen in April 2023.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Telecom outlook 2024: Experts weigh in on key sector drivers, Vodafone’s debt woes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sanjay Kapoor, former CEO of Airtel, and Balaji Subramanian, Vice President of IIFL Securities discussed the major trends from tariffs to new technologies that could drive the telecom sector in 2024.

They also shared their view on Vodafone Idea’s debt pile in the context of the spike in its stock. Shares of the telecom service provider were up 10% on January 2 after having gained 21% on Friday, December 29.

The shares gained as the Vodafone management had earlier said that the promoters plan to infuse up to ₹2,000 crore by the end of the December quarter. There were also media reports that the government could sell its 33% stake in Vodafone Idea to Elon Musk, the owner of “X” and Tesla. However, Vodafone denied any such discussions in a stock exchange filing. 

“The moot question here is what happens to Vodafone Idea given the huge amount of debt that they carry. From a business perspective, I actually don’t see a business case where somebody from any part of the world will come and say, I am willing to fund this company, and bear all the debt burden that this company has, and catch up with the market players and compete with them and make a business virtue out of this going forward, I actually don’t see that happening,” Kapoor said.

Read Here | Vodafone Idea shares up 30% in two sessions; Fund raising clarity awaited

Read Here | Vodafone Idea Shares In 2023: Fund raise remains elusive with no clarity on 5G timelines

Subramanian said there is potential for promoters to inject equity into Vodafone Idea. However, there is still need for substantial investment, considering the looming moratorium on spectrum and adjusted gross revenue (AGR) payments until late 2025.

“…the government also has got an option to convert the principal during the moratorium into equity, which means that whoever enters the stock right now sees a significant dilution potentially. So that is why It makes things a little tricky,” he noted.

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The telecom experts also shed light on the challenges for the telecom sector. Kapoor believes the biggest dilemma that most telecom companies face now is whether to double down on 5G or try and cover up the investments that have made since it’s become tough to monetise 5G. “There are more newer technologies coming in we are talking AI, we are talking IoT, we are talking storage,” he noted.

Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea partners with EaseMyTrip for special travel offers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Telecom major Vodafone Idea (Vi) has announced a partnership with travel-tech platform EaseMyTrip and announced special travel offers for its subscribers. Vi customers will get exclusive deals on flights, domestic and international hotels, trains, buses, and cab bookings through its app.  

As an introductory offer, zero convenience fees on all flight bookings will be charged, Vi said in a press release. .

“Travel is one of  the high-demand categories and is only growing with time,  whether domestic or international. EaseMyTrip in many ways is at the forefront of this phenomenon. We are extremely excited with this partnership and hope our consumers will appreciate what this partnership will bring out for them to make their travel bookings more delightful,” Avneesh Khosla, CMO, Vi said.

Rikant Pittie, Co-Founder of EaseMyTrip said, “We share a common ground with Vi of being a digital-first brand and believe in servicing our customers   with nothing but the best.”

In addition to this, Vi users will continue to enjoy usual benefits of the provider like Vi music, Vi games, Vi jobs, Vi education, VI movies & TV on the app. 

Also Read:EaseMyTrip aims to outpace market growth rate, focus on profitability

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea repays Rs 1,398 crore to Franklin Templeton as a part of its dues

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Franklin Templeton Mutual Fund on Friday received a payment of 10 percent from Vodafone Idea in the segregated portfolios of five of its schemes. This development marks a significant step in the ongoing resolution of the troubled debt involving Vodafone Idea. Franklin Templeton previously segregated Vodafone Idea debt in 2020, creating a separate portfolio to address the challenges associated with this debt within its mutual funds.

A segregated portfolio is essentially a distinct portfolio dedicated to managing troubled debt within a mutual fund.

Investors in these schemes can anticipate the distribution of the payment in proportion to their holdings within the segregated portfolio, Franklin Templeton Mutual Fund said in a notice.

The amount available for distribution is as follows:

The record date for units held in demat mode has been set for September 8, 2023. In cases where the record date falls on a non-business day, the immediately following business day will be considered the record date. For units held in physical or statement of account mode, the holding as of September 1, 2023, will be taken into account for processing these transactions.

It’s important to note that all unitholders and beneficial owners of the segregated portfolio of the scheme, under various plans/options, whose names appear in the records of registrar/depositories on the relevant date, will be entitled to receive recovery proceeds.

This payment represents the full and final settlement of the outstanding units in the plans of the segregated portfolio for the respective schemes. The payout will be processed based on the Net Asset Value (NAV) as of September 1, 2023. It should be noted that the payout will be subject to compliance with applicable regulations and the deduction of tax at source (TDS) as per the applicable rules and regulations.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea News: Here’s what the company said on raising funds, street sees 30% downside

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Telecom operator Vodafone Idea in its earnings call said that its equity fund raising exercise will conclude in the December quarter and debt funding will follow. The management said that fund raising discussions have gathered steam over the last 1-2 months.

The company said that the September quarter may see some benefits from raising the entry-level pack price in 12 circles towards the end of the June quarter, although it does see some SIM consolidation.

It also expects the payout burden to ease significantly after bunched up debt repayments and spectrum payouts in the September quarter.

The Aditya Birla Group company expects capex to remain at the same level until the fund raising exercise is complete.

Debt-ridden Vodafone Idea said that it received communication from a promoter group entity promising financial support of up to Rs 2,000 crore if needed to support its payment obligations. The company’s net loss at the end of the June quarter widened to Rs 7,840 crore.

However, the street remains unconvinced of the company’s commentary as consensus expects a potential downside of close to 30 percent in Vodafone Idea’s share price.

Brokerage firm JPMorgan said that fund raising remains elusive as talks have not yet reached the final stages. While some have moved to the due dilligence stage, nothing has been finalised yet. It expects liquidity constraints to continue impacting network investments on both 4G expansion and 5G rollout.

The brokerage further said that the key driver for the stock post equitisation of part of government debt is debt refinancing and capital infusion in the medium term.

JPMorgan has one of the lowest price targets for Vodafone Idea on the street. It has an underweight rating on the stock with a price target of Rs 3.

CLSA also has a sell rating on the stock with a price target of Rs 7. It termed the company’s quarterly results to be below estimates.

Shares of Vodafone Idea have been flat this year so far, declining close to 2 percent. None of the 18 analysts that track the stock have a buy rating on it. Three have a hold recommendation, while the other 15 have recommended their clients to sell the stock.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow