Vodafone Idea share price jumps 3% after Q2 loss narrows to ₹7,176 crore

The stock is up 2.9% to ₹7.58 per share on the NSE. The market capitalisation of the company stands at ₹52,832.46 crore.

On the BSE, VI shares are trading 2.85% higher at ₹7.58 piece.

Vodafone Idea Q2 results

On Wednesday, Vodafone Idea's consolidated loss narrowed to ₹7,175.9 crore in the latest July-September quarter due to an increase in average revenue per user (ARPU) due to the July tariff hike.

In the year-ago period, the company posted a loss of ₹8,746.6 crore.

The consolidated revenue from services increased 1.8% to ₹10,918.1 crore during the September quarter of the current fiscal year from ₹10,714.6 crore a year back.

The consolidated revenue from operations grew 2% to ₹10,932.2 crore in Q2 FY25 from ₹10,716.3 crore in the corresponding period previous fiscal.

"The impact of recent tariff interventions can be seen in improved ARPUs and revenue for the quarter, though the full impact will be reflected over the next couple of quarters. Further tariff rationalisation is needed for the industry to fully cover its cost of capital," VI CEO Akshaya Moondra said in a statement.

The telco hiked mobile services rates by 11%- 24% from July 4. However, the traffic increase resulted in a decline in the total subscriber base.

Vodafone Idea's overall subscriber base dropped to 20.5 crore from 21 crore and 4G subscriber base to 12.59 crore from 12.67 crore on a quarter-on-quarter basis.

In the September quarter, VI added about 42,000 sites for 4G services. It also shut down around 19,700 3G sites.

"Due to rapid shutting down of 3G sites across circles, 3G sites are present only in 8 circles as of September 30, 2024," the statement said.

The company's total debt stood at more than ₹2,22,470 crore, including ₹3,271 crore due to be paid to financial institutions and banks and ₹2,12,260 crore government dues.