Voda Idea may struggle to sustain beyond 2 years, despite likely AGR relief: Analysts

New Delhi: Telecom operator Vodafone IdeaNSE -26.80 % may still struggle to sustain its business in the long term given its weak cash flows, even if the Supreme Court agrees to the government proposal to allow a staggered payment of the adjusted gross revenue (AGR) dues over 20 years or less, analysts say.

“While VIL may be able to sustain over next two years with the spectrum and AGR payment deferment, our cash flow analysis suggests that business viability is under cloud even at Rs 200 ARPU (Average Revenue Per User) and subscriber base of 280 million once the deferred spectrum payment resumes in FY23,” brokerage firm Credit Suisse said in a report on Tuesday.