Vodafone India’s (Vi’s) net loss widened 6.4 per cent on a year-on-year (YoY) basis at Rs 7,595 crore in the second quarter of FY23 due to an increase in finance and operating expenses.
In the same period last year, the company had posted a net loss of Rs 7,132 crore.
The net loss widened by 4 per cent on a sequential basis.
In the first quarter of FY23, Vi had rung up a net loss of Rs 7,296 crore.
Gross revenue in the second quarter of FY23 increased by 12.8 per cent YoY to Rs 10,614 crore while earnings before interest, tax, depreciation and amortisation (Ebitda) grew 6 per cent to Rs 4,097 crore.
Operational expenses rose 17.5 per cent YoY to Rs 6,517 crore while finance expenses went up 18.7 per cent to Rs 6,033 crore.
Average revenue per user (ARPU) improved to Rs 131, up 2.3 per cent quarter-on-quarter from Rs 128 in Q1 of FY23.
The company lost six million subscribers sequentially and its user base stood at 234.4 million at the end of the second quarter.
However, the 4G customer count grew by 1.6 million sequentially to 120.6 million.
Data consumption by 4G customers increased sequentially by 4.6 per cent to 15 GB/month.
Vi has been struggling operationally and financially and previous rating downgrades have resulted in an increase in finance costs.
Certain vendors have asked for an immediate repayment of their outstanding dues and the company’s ability to continue as a going concern remains dependent on fund raising and successful negotiations with vendors.
“As on date the group has met all its debt obligations,” Vi said.
Gross debt as of the end of September stood at Rs 2.2 trillion, comprising deferred spectrum liabilities and bank borrowings.
Spectrum liabilities have increased due to recently acquired spectrum, and Vi has reduced its bank debt sequentially.
While rival firms Airtel and Jio have rolled out 5G service, Vi is yet to finalise its contracts for 5G network equipment.
In a statement Vi Chief Executive Officer Akshaya Moondra said the company was engaged with lenders and investors regarding further fund raising for network expansion and the 5G roll-out.
Moondra said the company reported a fifth consecutive quarter of revenue growth and 4G subscriber addition.
However, Vi has been unable to raise funds from external investors. The conversion of interest on adjusted gross revenue dues into equity to the government too has not materialised so far.
“We continue to focus on expanding our high-speed broadband network coverage and capacity. We also continue to refarm 2G/3G spectrum to expand our 4G coverage and capacity as well as upgrade our core and transmission network,” the company said.