Voda Idea’s loss jumps 4 times to Rs 25,460 cr in Q1; revenue falls 5.4%

Vodafone Idea reported a pre-tax loss of Rs 25,460 crore and complete erosion of its net worth in the first quarter of financial year 2020-21 (Q1FY21) because of provisioning for adjusted gross revenue (AGR) liability.

The result indicated the impact of the Covid-19 pandemic and the lockdown, but its overall performance was weighed down by financial stress. The pre-tax loss in Q1FY21 increased fourfold year-on-year (YoY) from Rs 6,673 crore, after the company set aside Rs 19,440 crore as an exceptional item towards the AGR liability.

Vodafone Idea’s AGR liability stands at Rs 58,254 crore after the Supreme Court rejected the firm’s plea for reassessing dues last month. The company has indicated that its ability to continue as a going concern depends on a favourable outcome in the case.