Vi Q4 Result: ARPU Drops To Rs. 107 From Rs. 121 In Q3 FY21

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Vi is losing its average revenue per user against Reliance Jio and Airtel in the country. The company has managed to achieve only Rs. 107 ARPU in the Q4 from Rs. 121 in the Q3 of the last financial year. The drop in APRU is huge but not surprising as interconnect usage charges have been removed from January 1st, 2021.

 
Vi Q4 Result: ARPU Drops To Rs. 107 From Rs. 121 In Q3 FY21

Vodafone-Idea Net Loss In Q4

Apart from losing its ARPU, the telecom operator has posted a loss of Rs. 7,022.8 crores in Q4 FY21, which is higher than the previous quarter as it was Rs. 4,532.4 crores. Vi posted a loss of Rs. 11,643 crores in the Q4 of the Q4 of the last financial year.

Notably, the total revenue has been declined close to Rs. 9,607.6 crores as against Rs. 10,894 crores. However, the telecom operator said that lenders want to increase interest rates.

"There exists material uncertainty relating to the company's ability to continue as a going concern, which is dependent on its ability to raise additional funds as required, successful negotiations with lenders on continued support, refinancing of debts, and monetization of certain assets," Vodafone-Idea said.

Vodafone-Idea Fund Raising Plans

Notably, Vi was planning to raise Rs. 25,000 crores through debt and a mix of equity. The procedure has been not finalized despite having several internal discussions with investors.

Vi said that the telco is still in discussion with all potential investors, Vodafone Idea Managing Director Ravinder Takkar said. Besides, the telecom operator has managed to control its user base to two million from four million.

The telecom operator is offering its services to 267.8 million users, while Reliance Jio and Airtel are providing their services to 426.2 million and 340 million, respectively.

"The 12 percent sequential revenue de-growth is a huge concern despite Vi's decent 4G user adds in the March quarter, which makes it all the more critical for the company to swiftly line up the funding, without which, its survival chances now appear slim," said an analyst at a leading global brokerage.

 

It is worth noting that Vi is quite behind Reliance Jio and Airtel in terms of users and market share, which is why believe that if it fails to raise money in the coming months, then its survival is tough as it is under huge debt.

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