The shares of this telecommunications company are in focus after the company informed that it is in exploratory talks with Elon Musk’s Starlink and various other satcom providers.
With a market capitalization of Rs 51,545.77 crore, the shares of Vodafone Idea Ltd were trading at Rs 7.22 per share, decreasing around 3.09 percent as compared to the previous closing price of Rs 7.45 apiece.
Reason for rise
Vodafone Idea, in an exchange filing, stated that it continuously explores partnerships and initiatives to enhance service quality and expand telecom services. These efforts are part of its routine business operations, aimed at improving network capabilities and customer experience through strategic collaborations.
Vodafone Idea’s CTO, Jagbir Singh, confirmed talks with Starlink and other firms for potential partnerships. He stated the company is evaluating options to determine the right partner for expansion, aligning with its strategic goals. Discussions are ongoing, with decisions dependent on Vodafone Idea’s long-term growth strategy. according to Moneycontrol.
Additionally, the company also announced the rollout of its 5G services in Mumbai. It had also announced in an exchange filing that its 5G services in the city will be available, backed by its competitive spectrum holding and investment in next-generation infrastructure.
Financial performance
Examine the company’s financial condition, revenue jumped by 4 percent from Rs 10,673 crore in Q3FY24 to Rs 11,117 crore in Q3FY25, and during the same time frame, net loss shrunk from Rs 6,986 crore to Rs 6,609 crore.
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Strategic Initiatives
The company is making significant capex investments, with Rs 13.6 billion spent in Q2FY25 and a projected Rs 80 billion for H2FY25. Key initiatives include increasing 4G data capacity by 14 percent, adding 42,000 4G sites, and enhancing network speeds by 18 percent, improving coverage and indoor experience.
Market Initiatives
Recent tariff hikes boosted ARPU and revenue growth, with customer ARPU ex-M2M rising 7.8 percent QoQ. Despite losing 5.1 million subscribers due to increased port-outs to a competitor not raising tariffs, the company continued growing its postpaid segment with feature-rich offerings. A merger is underway.
Management comments
Management is optimistic about the company’s transformation and its competitive positioning in the market. They are confident in leveraging investments to drive improved performance and growth, particularly in the telecom sector, ensuring a strong future outlook and enhanced market presence.
Company snapshot
Vodafone Idea Limited provides pan-India voice and data services across second-generation (2G), third-generation (3G) and fourth-generation (4G) platforms. Its Vodafone Idea business services provide communication solutions to global and Indian corporations, public sector and government bodies, small and medium enterprises, and start-ups.
Written by:- Abhishek Singh
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