Difficult for Vodafone Idea to pay upfront AGR dues: Credit Suisse

Vodafone Idea will find it challenging to pay more than ₹50 billion of incremental upfront dues in the AGR dues, according to brokerage, Credit Suisse.

In a report it said that after having paid ₹69 billion of AGR dues, estimate is that Vodafone Idea would have ₹60 billion of cash balance as of March 2020 assuming no incremental capex in fourth quarter of financial year 2020.

“With VIL not having access to incremental debt funding, it would be difficult for VIL to pay more than ₹50 billion of incremental dues. On the other hand, having already paid 48 per cent of dues, incremental upfront payment will not be a problem for Bharti Airtel especially post the recent capital raise and declining leverage on back of improving profitability,” Credit Suisse said.