Vodafone Idea - Q4 FY21 Result Report - YES Securities

(Rating: Reduce, TP: Rs8, Downside: 9%)

- Revenue declined by 11.8% QoQ to Rs 96.1bn. Out of which, 9.6% QoQ decline is due to shift to Bill and Keep regime from Jan 01, and remaining 2% decline is mainly due to lesser number of days in Q4FY21.

- Reduction in roaming and access charges as per the Bill and Keep Regime and focus on cost optimization led to 2.9% QoQ increase in EBITDA, with EBITDA margin improving by 654bps QoQ due to lower denominator effect.

- On account of high depreciation and finance cost (due to high debt), it reported net loss of Rs 70.2bn compared to net loss of Rs 45.3 bn in Q3FY21.

- Net debt remained high at Rs 1,799.6 bn (around 10x on FY21 EBITDA, with interest service coverage ratio at 0.57x). Initiate coverage with REDUCE rating on the stock

Shares of Vodafone Idea Ltd was last trading in BSE at Rs.9.1 as compared to the previous close of Rs. 8.8. The total number of shares traded during the day was 120106197 in over 155875 trades.

The stock hit an intraday high of Rs. 9.38 and intraday low of 8.51. The net turnover during the day was Rs. 1077848641.

Source : Equity Bulls

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