Vodafone Idea Share Price Jumps 12.51% on January 20, 2025

Vodafone Idea Ltd has been in focus on Monday. On January 20, 2025, Vodafone Idea share price (NSE: IDEA) opened at ₹10.02, up from its previous close of ₹9.11. At 10:42 AM, the share price of Idea was trading at ₹10.25, up by 12.51% on the NSE.

This focus followed news reports that the government may announce a partial waiver of AGR dues, potentially reducing Vodafone Idea’s liabilities by ₹52,000 crore. The relief is expected to provide significant financial support to the company. Reports suggest that the announcement could be made during the Union Budget 2025, scheduled for February 1, 2025.

Q2 FY 2025 Financial Highlights

For the quarter, the company reported a revenue of ₹109.3 billion, reflecting a 4% QoQ increase. Customer revenue grew by 5.6% compared to the previous quarter, driven by recent tariff hikes implemented by private operators. EBITDA for the quarter stood at ₹45.5 billion on a reported basis. Excluding the impact of Ind AS 116, the cash EBITDA improved to ₹23.2 billion, the highest since the merger, marking a 10.5% QoQ growth.

Depreciation and amortisation expenses for the quarter were ₹54 billion, with net finance costs amounting to ₹63.1 billion. Excluding Ind AS 116, these figures were ₹39.4 billion for depreciation and amortisation, and ₹54.1 billion for finance costs.

The company’s capital expenditure (capex) for Q2FY25 was ₹13.6 billion, significantly higher than ₹7.6 billion in Q1FY25. The expected capex for the second half of FY25 is ₹80 billion. Additionally, the company’s debt from banks and financial institutions has decreased by ₹45.8 billion over the past year, standing at ₹32.5 billion at the end of Q2FY25, down from ₹78.3 billion in Q2FY24. The cash and bank balance as of September 30, 2024, was ₹136.2 billion.

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