Vodafone Idea Records Q1 Loss of Rs 25,460.20 crore as Pandemic Hits Business

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© Sharmita Kar | India.com Business Desk

New Delhi: One of India’s leading telcos, Vodafone Idea on Thursday recorded a 5.4 per cent drop to the count of Rs 25,460 crore against Rs 4,874 crore in the first-quarter revenue last year. The staggering downfall has come as a result of the provisions for its statutory dues in the adjusted gross revenue (AGR) filing, a BSE report stated. Vodafone Idea also said that it recognised an additional charge of Rs 19,440.5 crore in June quarter towards the total government dues, over the Rs 460 billion estimated on March 31, 2020. Besides, the telecom major stated that its subscriber base declined substantially from over 291 million users to 279 million, impacted severely due to the shutdown of retail stores. “Q1FY21 was a challenging quarter as availability of recharges due to store closures and ability of customers to recharge on account of economic slowdown were impacted,” Chief Executive Officer Ravinder Takkar said, as quoted by Reuters. He added that despite the nationwide lockdown imposed earlier, the company managed to provide “seamless high-quality services” and kept businesses and people connected in these “unprecedented times”.

Last month, the cash-strapped Vodafone Idea received a huge breather from the Supreme Court as it directed the Income Tax Department to refund taxes to the tune of Rs 833 crore, bringing respite in the company’s efforts to pay the AGR dues.

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