In fact, the debt of the company is increasing, as well as the problems have increased due to the end of new investment. Due to which Vodafone-Idea Chairman Kumar Magalam Birla had offered to sell his stake in the company to the government.
Gross debt on Vodafone Idea Limited is Rs 1.8 lakh crore.
Vodafone Idea Limited, a debt-ridden private sector telecom company, has reported a consolidated net loss of Rs 7,319 crore in the first quarter of the current financial year ended June 30, 2021. Due to this, the company had a loss of Rs 25,460 crore in the same quarter of the previous financial year. The company’s consolidated operating income declined by nearly 14 per cent to Rs 9,152.3 crore during the quarter from Rs 10,659.3 crore in the year-ago quarter.
The company’s total gross debt stood at Rs 1,91,590 crore at the end of the first quarter. This includes spectrum payment commitment of Rs 1,06,010 crore and adjusted gross revenue (AGR) liability of Rs 62,180 crore. The cash and cash equivalents of the company stood at Rs 920 crore at the end of the quarter under review. Thus, the company had a net debt burden of Rs 1,90,670 crore.
huge debt on the company
However, the company’s loss has increased as compared to the previous quarter. The company had a loss of Rs 6985.1 crore in the previous quarter. Ravinder Takkar, Managing Director and Chief Executive Officer (CEO) of Vodafone Idea said that we are focusing on implementing our strategies to keep our customers ahead. Our cost maximization plan is on track. We are in talks with potential investors to raise funds.
Why is there talk of closure
In fact, the debt of the company is increasing, as well as the problems have increased due to the end of new investment. Due to which Vodafone-Idea Chairman Kumar Magalam Birla offered to sell his stake in the company to the government. But he resigned after no response from the government. After the resignation of Birla, it is gaining momentum that the company is not going to be closed now. However, the CEO of Vodafone India has assured his employees that there is no need to panic. The matter is all under control. But the figures are giving a different testimony.
Merger did not solve the problem
Vodafone Idea is going through a serious financial crisis. His efforts to raise funds have failed. Birla had recently demanded an immediate government package to bail out the debt-ridden company. Vodafone India and Idea Cellular merged on August 31, 2018. Since then this company is continuously in loss, it has a debt of Rs 1.80 lakh crore. Voda was merged with Idea so that the difficulties could be reduced but instead of decreasing, it kept on increasing.
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