Shares of Vodafone Idea rose 2.5 percent in the early trade on November 9 after the Bombay High Court directed the income-tax department to refund Rs 1,128 crore paid by the telecom operator in dues in 2016-17.
At 10.19 am, Vodafone Idea was trading 1.5 percent higher at Rs 13.85 on the National Stock Exchange.
The court deemed the assessment order against the telecom major as “unsustainable and time-barred". This is in relation to an assessment order passed to by an income tax officer on August 31 to Vodafone Idea, two years after a dispute resolution panel issued directions to the telecom major.
Vodafone Idea contested the order, saying the assessing officer failed to deliver a final verdict within the stipulated 30-day period.
The court also recommended an inquiry against the assessing officer for “failure to abide by the legal mandate and the lack of diligence on the part of officials concerned”.
“Strict action should be taken against persons responsible for the laxity and lethargy displayed which has caused a huge loss to the exchequer and, in turn, to the citizens of this country," the court stated. In addition, the court also directed the process to be completed within the next 30 days.
The telecom operator recently released its Q2 earnings, where its net loss widened on year to Rs 8,737.9 crore against Rs 7,595.5 crore in the same quarter last year.
Revenue also remained flattish on year at Rs 10,716.3 crore, as compared to Rs 10,614.6 crore in the year-ago period. Revenue was driven by better subscriber mix and 4G subscriber additions.
However, its EBITDA margin improved 140 basis points year to 40 percent in Q2. The blended average revenue per user (ARPU) per month also improved on year to Rs 142 from Rs 131 in the base period. On sequential basis as well, ARPU improved from previous quarter's Rs 139. Nonetheless, despite the rise, the ARPU remains much lower than its peers Jio and Bharti Airtel.
The company's net debt also reduced by Rs 7,220 crore during the last one year and now stood at Rs 2,12,660 crore at the end of Q2.
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