May consider converting interest expense into shares: Voda Idea CFO Moondra

0
14

Overdue telecom operator Vodafone Idea is considering the option of converting interest from deferred legal payments into shares, a senior company official said Monday.

The company is also in talks with banks and investors to raise funds and some of the proceeds could be used to meet debt obligations due in this fiscal period, said Chief Financial Officer of Vodafone Idea Limited (VIL) Akshay. Moondra during the company’s earnings call. .

The government has given the option to postpone payment of all fees for spectrum and adjusted gross income (AGR) for four years to provide debt-ridden telecommunication services an opportunity to improve your cash flows and invest in the business.

“For AGR dues, we are discussing with the DoT (Department of Telecommunications) to determine the final amount in line with the Supreme Court ruling. Additionally, there is an option to convert this deferral into We are evaluating it and will come back to our decision on the early conversion of interest into by the deadline of January 12, 2022, ”Moondra said.

According to him, the company is also in talks with banks and investors to raise both debt and “These discussions also include some sort of financing deal to be able to meet immediate debt maturities approaching in the remainder of fiscal year 22 quarter.”

Last week, VIL reported a narrow consolidated loss to Rs 7,144.6 crore for the September quarter due to an increase in mobile service tariffs and cost optimization.

The company had recorded a loss of Rs 7,218.2 crore in the corresponding period of the previous financial year.

In the last quarter of September, its consolidated revenue decreased approximately 13% to Rs 9,406.4 crore. The same was at Rs 10,791.2 crore over a year ago.

VIL’s total gross debt, excluding leasing liabilities and including accrued but undue interest, as of September 30, 2021, amounted to Rs 1.94,780 crore. The amount includes spectrum deferred payment obligations of Rs 1.08,610 crore, AGR liability of Rs 63,400 crore owed to the government, and bank and financial institution debt of Rs 22,770 crore.

VIL Chief Executive Officer and CEO Ravinder Takkar said the company has begun work on raising mobile tariffs and is expected to be operational very soon.

“Some work on tariff increases has begun. Rate increases, which are the next important step, will also take place soon. For us, particularly as a company, we will not shy away from raising tariffs,” Takkar said.

During the September quarter, VIL gradually increased the entry level prepaid rate plan from Rs 49 to Rs 79, as well as increased rates for some postpaid plans.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

Dear reader,

Business Standard has always sought to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our determination and commitment to these ideals. Even during these difficult times resulting from Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive comments on topical and topical issues.
However, we have a request.

As we fight the economic impact of the pandemic, we need your support even more so we can continue to bring you more quality content. Our subscription model has seen an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve our goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through multiple subscriptions can help us practice the journalism we engage in.

Support quality journalism e sign up for Business Standard.

Digital editor

LEAVE A REPLY

Please enter your comment!
Please enter your name here