Might consider converting interest arrears into equity: Voda Idea CFO

Might consider converting interest arrears into equity: Voda Idea CFO

Debt-ridden telecom operator Vodafone Idea is evaluating the option of converting interest arrears arising out of deferment of statutory payments into equity, a senior company official said on Monday.

Vodafone Idea Limited (VIL) Chief Financial Officer Akshay Mundra said during the company’s earnings call that the company is also in talks with banks and investors to raise funds and a part of the proceeds will come from loans maturing in this financial year. likely to be used to meet related obligations. ,

The government has given debt-ridden telcos an option to defer all their dues for spectrum and adjusted gross revenue (AGR) for four years to improve their cash flow and provide an opportunity to invest in business.

“For AGR dues, we are in discussion with DoT (Department of Telecom) to determine the final amount in line with the Supreme Court’s decision. Also, there is an option to convert such moratorium into equity. We will evaluate the same. and we will revert to our decision to convert the interest to equity by the January 12, 2022 deadline.”

According to him, the company is also in talks with banks and investors to raise both debt and equity. “These discussions also include some sort of funding arrangement to be able to meet the immediate maturity of the debt coming in the remaining quarter of FY22.”

Last week, VIL narrowed its consolidated loss to Rs 7,144.6 crore for the September quarter on account of increase in tariff of mobile services and cost optimization.

The company had a loss of Rs 7,218.2 crore in the corresponding period of the last financial year.

In the latest September quarter, its consolidated revenue declined nearly 13 per cent to Rs 9,406.4 crore. It was Rs 10,791.2 crore in the same period a year ago.

VIL’s total gross debt, excluding lease liabilities and including interest earned but not payable, stood at Rs 1,94,780 crore as of September 30, 2021. This amount includes deferred spectrum payment obligation of Rs 1,08,610 crore, AGR liability of Rs 63,400 crore and loans from banks and financial institutions of Rs 22,770 crore.

VIL MD and CEO Ravinder Takkar said that the company has started working on increasing the mobile tariff and expects it to be implemented soon.

Takkar said, “Some activity on tariff hike has started. The next important step which is the tariff hike, will also take place soon. For us, especially as a company, we will not shy away from raising tariffs,” Takkar said. ”

During the September quarter, VIL increased the entry-level prepaid pricing plan from Rs 49 to Rs 79 in a phased manner as well as increased tariffs for some postpaid plans.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is generated automatically from a syndicated feed.)

                                                    </div><div style="background: #fee8dd; padding: 12px; border: dashed 1px black; margin-bottom: 20px;">

mail Dear reader,

Business Standard has always worked hard to provide updated information and commentary on events that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only reinforced our resolve and commitment to these ideals. Even during these difficult times arising out of COVID-19, we are committed to keeping you informed and updated with relevant news, authoritative views and scathing comments on relevant relevant issues.
However, we have a request.

As we grapple with the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. Subscribing to more of our online content can only help us achieve our goals of providing you with better and more relevant content. We believe in independent, unbiased and credible journalism. Your support through more subscriptions can help us practice the journalism we’re committed to.

support quality journalism and Subscribe to Business Standard,

digital editor



this is an unedited and auto-generated supporting article of the syndicated news feed are actualy credit for owners of origin centers. intended only to inform and update you about Sakari naukri , result , UPSC , Exam Jobs etc. for Provides real or authentic news. also Original content may not have been modified or edited by Rojgar samachar team members.

Leave a Reply