Shares of Vodafone Idea fell close to 10 percent in early trade on Monday after analysts were disappointed by the company’s earnings performance for the quarter ended December.
At 1:15 pm, the scrip was trading at Rs 11.10 on the BSE, down 6.72 percent or 0.80 points, while the benchmark Sensex was at 57,777.38, down 1,259 points or 2.13 percent.
Vodafone Idea's consolidated net loss widened to Rs 7,230.9 crore in Q3FY22 even as revenues rose 3.3 percent sequentially. The operational performance of the company was weak in the reported quarter.
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The consolidated operating profit of the company declined 1.2 percent QoQ to Rs 3,816.5 crore despite the company undertaking tariff hikes in the quarter.
The company's earnings per share (at a face value of Rs 10) dropped from Rs 24.8 lakh in Q2FY22 to Rs 25.2 lakh in the latest quarter. The company reported a paid-up equity share capital of Rs 28,735.4 crore, the same as the previous quarter.
“We remain focused on executing our strategy to improve our competitive position and win in the marketplace. Separately, we have opted for upfront conversion of interest arising from deferment of the spectrum and AGR dues into equity," Ravinder Takkar, MD and CEO, Vodafone Idea Limited, said.
Nomura India was concerned by the increase in the churn in subscriber base of the company to 3.4 percent as against 2.9 percent in the previous quarter. Given the weakness in earnings, Nomura India retained its ‘reduce’ rating on the stock and price target of Rs 8.
Read More: ICICI Bank up over 1% as Q3 profit exceeds estimates; Credit Suisse maintains 'outperform'
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