Vodafone Idea share price falls over 2.3 per cent in Monday’s trading session after the telecom operator moved the Supreme Court challenging the government’s denial of its plea to waive more than $5 billion in interest and penalties related to statutory dues.
At 9:20 am, Vodafone Idea share price was trading at ₹7.16 apiece on May 19, against previous close at ₹7.37.
According to Reuters report, the Department of Telecommunications (DoT) denied a request from Vodafone Idea CEO Akshaya Moondra for relief from interest and penalties related to a $9.76 billion dues claim, on April 29.
“The request cannot be considered,” the communications ministry said even though Moondra had cautioned that the future of India’s third-largest telecom company was in jeopardy.
After facing rejection, Vodafone Idea—co-owned by the UK’s Vodafone Group and India’s Aditya Birla Group—approached the Supreme Court on Thursday. The telecom operator requested the court to instruct the government to act in the “public interest,” highlighting the vital importance of the telecom industry. The case is expected to be heard later this week.
Vodafone Idea has been under financial pressure since a 2019 Supreme Court verdict broadened the scope of adjusted gross revenue (AGR), significantly increasing telecom companies’ liabilities. Although the government converted a portion of the company’s dues into equity, acquiring a 49% stake, Vodafone Idea continues to struggle financially.
Vodafone Idea Q4 results 2024 highlights
Vodafone Idea (Vi) reported a net loss of ₹7,674.6 crore for the fourth quarter (January–March) of FY24, marking a 19.5% increase compared to ₹6,418.9 crore in the same period last year, mainly due to rising expenses and stagnant revenue.
Compared to the previous quarter, the company’s net loss also grew by 9.85%, up from ₹6,986 crore.
Finance costs for the quarter rose significantly to ₹6,280.3 crore, a 25.5% jump from ₹5,004 crore in Q4 FY23. For the full financial year FY24, Vodafone Idea’s total net loss widened to ₹31,238 crore, an increase of 6.6% from ₹29,301 crore in FY23.
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