Vodafone Idea Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 26005.53 Crore) operating in Telecommunications sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 9647.80 Crore, down -11.76 % from last quarter Total Income of Rs 10933.50 Crore and down -19.06 % from last year same quarter Total Income of Rs 11920.40 Crore. Company reported net profit after tax of Rs -7022.60 Crore in latest quarter.
Investment Rationale
Vodafone Idea’s (VIL) Q4FY21 cash EBITDA at Rs22bn benefited from one-off gains in network cost of Rs4.5bn; adjusted cash EBITDA came in below estimate despite cost-saving efforts. Though VIL has seen marginal improvement in 4G subscriber (sub) addition and lower total subs loss, it is too little to make any difference. The brokerage sees liabilities coming up for payment soon and VIL may have cashflow mismatch. The efforts to raise funds has also not yielded any outcome yet. Relief from government on spectrum payment, and reduction in AGR liability on SC accepting reconciliation are other hopes. The brokerage has cut EBITDA estimates by 11%/14% for FY22E/FY23E, but maintained target price of Rs5 as it increases the EBITDA multiple to 13.3x (from 10.5x earlier).
Promoter/FII Holdings
Promoters held 72.1 per cent stake in the company as of March 31, 2021, while FIIs held 4.6 per cent, DIIs 1.1 per cent and public and other 22.2 per cent.
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