Vodafone Idea posts highest loss by Indian firmJuly 01, 2020 11:48
Vodafone Idea, the country's third largest telecom operator, on Wednesday reported a staggering Rs 73,878 crore of net loss in fiscal ended March 2020 - the highest ever by any Indian firm - after it provisioned for Supreme Court mandated statutory dues. The firm, which has to pay Rs 51,400 crore dues after the apex court ordered the non-telecom revenues to be included in calculating statutory dues, said the liability has "cast significant doubt on the company's ability to continue as a going concern".
In a regulatory filing, Vodafone Idea (VIL) reported widening of March quarter net loss to Rs 11,643.5 crore. Its losses stood at Rs 4,881.9 crore in the same period a year ago and Rs 6,438.8 crore in previous October-December quarter.
The Department of Telecom (DoT) estimates the firm's adjusted gross revenue (AGR) dues at Rs 58,254 crore for period up to FY 2016-17, but the company put the dues at Rs 46,000 crore "after adjustment of certain computational errors and payments made in the past not considered in the DoT demand."
Of the total dues, it has made a payment of Rs 6,854.4 crore. The company took a hit of Rs 1,783.6 crore on account of AGR-related liabilities, and Rs 3,887 crore on account of one-time spectrum charges both of which were recognised as exceptional items during the quarter ended March 2019. Revenue from operations for the just-ended quarter came in at Rs 11,754.2 crore. -- PTI