Price hikes to push Voda Idea Ebitda up 70% in FY22
Vodafone Idea NSE -1.36 % (Vi) is likely to see almost 70% and 14% jumps in operating income and revenue respectively in FY22 following its decision to hike all prepaid tariffs by up to 25%, provided the loss-making telco doesn’t suffer any major resulting market share losses, say analysts.
The price hikes, they added, would improve cash flows and raise visibility on near-term improvement in the telco’s financials, and in turn, aid its prolonged fund-raising efforts, which is crucial for Vi to ramp up 4G operations and compete effectively with Reliance Jio and Bharti Airtel.