Vodafone Idea plunges 29% to hit new low on weak June quarter result

Shares of Vodafone Idea tanked 29 per cent to Rs 6.60, also its new low on the BSE on Monday after the telecom services provider reported a consolidated net loss of Rs 4,874 crore for the quarter ended June 30, 2019 (Q1FY20). It had posted net loss of Rs 4,882 crore in March 2019 quarter (Q4FY19).

The company’s revenue slipped 4 per cent at Rs 11,270 crore against Rs 11,775 crore in previous year quarter. The lower revenue was due to further decline in subscriber base (due to adoption of minimum recharge plan) and lower than expected increase in ARPU (downtrading by customers). Reliance Jio has now surpassed IDEA in terms of the subscriber base.

The numbers missed Street estimates, which had expected a loss of Rs 3,247 crore and revenue at Rs 11,800 crore. The Q1 ARPU increased 3.8 per cent to Rs 108, much below Street estimates.

While declaring its Q1 numbers, the company said it had 320 million subscribers at the end of the June quarter as against 334.1 million in the March quarter. With this, it lost its position as the largest telecom operator in the country.

At 12:28 pm, Vodafone Idea was trading at Rs 6.74 apiece, down 27.14 per cent, as against a 0.92 per cent decline in the S&P BSE Sensex.