On q-o-q basis, in December 2018 quarter Vodafone Idea's consolidated revenues rose 54% to Rs 11764.80 crore.

OPM improved 360 basis points to 9.7% which saw OP jump 146% to Rs 1136.90 crore.

Other income rose 1% % to Rs 218.00 crore and interest grew 30% to Rs 2824.80 crore. After providing for depreciation (up 59% to Rs 4773.40 crore), PBT loss grew 39% to Rs 6243.30 crore.

Share in Profit of JV fell 6% to Rs 39.80 crore. Thus loss at the PBT level after Share of profit in JV grew 39% to Rs 6203.50 crore.

EO loss stood at Rs 800.80 crore against Rs 565.80 crore. Thus PBT after EO stood at a loss of Rs 7004.30 crore against Rs 5019.10 crore

Exceptional items for the quarter ended December 2018 includes (i) Integration and merger related costs amounting to Rs 747.3 crore, (ii) provision for impairment of assets amounting to Rs 35 crore on account of network re-alignment and integration and (iii) re-assessment of certain accruals of Rs 18.5 crore.

After providing for taxation (write back of Rs 1999.70 crore against Rs 45.30 crore) PAT loss stood at Rs 5004.60 crore against Rs 4973.80 crore.

y-o-y results

On y-o-y basis, consolidated revenues grew 81%. OPM fell 910 basis points which saw OP fall 7%.

PBT loss grew 212% and PAT loss jumped 290%.

Nine months results

For the nine months Idea's consolidated revenues grew 14% to Rs 25317.40 crore.

OPM fell 1190 basis points to 8.9% which saw OP fall 51% to Rs 2257.70 crore.

Other income rose 460% % to Rs 574.50 crore and interest grew 82% to Rs 6516.80 crore. After providing for depreciation (up 56% to Rs 9871.70 crore), PBT loss grew 160% to Rs 13556.30 crore.

Share in Profit of JV fell 43% to Rs 141.900 crore. Thus loss at the PBT level after Share of profit in JV grew 170% to Rs 13414.40 crore.

EO gains stood at Rs 1997.90 crore against NIL. Thus PBT after EO stood at a loss of Rs 11416.50 crore against a loss of Rs 4961.20 crore

Exceptional items for the nine months ended December, 2018 includes a charge / (credit) towards (i) gain on sale of ICISL Rs (33,47.3) crore, (ii) Integration and merger related costs amounting to Rs 2104.3 crore, (iii) re-assessment of certain estimates of Rs (8,08.4) crore and (iv) provision for impairment of assets amounting to Rs 35 crore on account of network re-alignment and integration (v) re-assessment of certain accruals of Rs 18.5 crore.

After providing for taxation (down 3% to Rs 1694.60 crore) PAT loss stood at Rs 9721.900 crore against Rs 3206.00 crore.

Results not comparable due to merger of Vodafone India with Idea cellular

The merger of Vodafone India with Idea cellular was completed on August 31, 2018, accordingly the consolidated financials include Vodafone India figures from August 31, 2018. Hence, Q2FY19 & Q3FY19 figures as reported above are not comparable to earlier periods.

Capital raising

The Board of Directors have considered and approved the capital raise for an amount aggregating upto Rs 25,000 crore by way of rights issue to existing eligible equity shareholders of the company.

The Promoter Shareholders Vodafone Group (VFG) and Aditya Birla Group (ABG) have re-iterated to the Board that they intend to contribute up to Rs 11000 crore and up to Rs 7250 crore, respectively, as part of such rights issue and indicated to subscribe the under subscribed portion, if any.

Other details

The company has given additional site exit notices to the tower vendors during the quarter. The unsettled demand on the company (including additional exits) as at December, 2018 aggregated to Rs 2782.5 criore. Against these, the company estimates the settlement amount not to exceed Rs 1285 crore.

Accordingly, the company has recognised a provision of Rs 725 crore towards exit charges during the quarter in addition to Rs 1000 crore provided in the previous quarter.

On 8th January 2013, Department of Telecommunications (DoT) issued demand notices towards one time spectrum charges:

- for spectrum beyond 6.2 Mhz in respective service areas for retrospective period from 1st July 2008 to 31st December 2012, amounting to Rs 369.1 crore, and

- for spectrum beyond 4.4 Mhz in respective service areas effective 1st January 2013 till expiry of the period as per respective licenses, amounting to Rs 1744.4 crore.

-subsequently on 9 July 2018, DoT revised the demand beyond 4.4mhz to Rs 5725.4 crore as against Rs 4516.5 crore.

On 9th July 2018, i.e. at the time of merger approval of erstwhile Vodafone with ICL, DoT asked the Company to submit bank guarantee (BG) amounting to Rs 3322.4 crore towards one time spectrum fees beyond 4.4 MHz mentioned above. The company complied with the aforesaid condition but thereafter approached TDSAT, seeking return of BGs of Rs 3322.4 crore. On 21 January, 2019, the company has received a favorable order from TDSAT directing DoT to release the BG of Rs 2113.5 crore within 2 months.

Valuation

The stock trades at Rs 30.