Vodafone Idea needs ARPU of Rs 238 to meet cash flow needs even if allowed 20 yrs to pay AGR dues: Analysts

KOLKATA: Vodafone IdeaNSE 7.98 % needs to more than double its average revenue per user (ARPU) to Rs238 from current levels by FY23 to generate the required operating income to stay free cash flow (FCF) neutral even if the nation’s top court allows staggered repayment of adjusted gross revenue (AGR) dues over 20 years, analysts said.

They, though, said a softening in the Supreme Court’s AGR stance in allowing telcos to file staggered payment roadmaps raises VIL’s chances of staying alive as a going concern and the telecom industry retaining its three-player market structure, comprising Reliance Jio, AirtelNSE 1.49 % and VIL.