Moneycontrol
Last Updated : Feb 07, 2019 12:43 PM IST | Source: Moneycontrol.com

Vodafone Idea rises 10% despite posting losses in Q3; Deutsch Bank maintains buy

Revenue was up 53.5 percent at Rs 11,764.8 crore versus Rs 7,663.6 crore.

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Share price of Vodafone Idea rose 10 percent intraday Thursday despite company's net loss widened in the quarter ended December 2018.

The company's consolidated Q3FY19 net loss was at Rs 5,004.6 crore against loss of Rs 4,973.8 crore in Q2FY19.

Revenue was up 53.5 percent at Rs 11,764.8 crore versus Rs 7,663.6 crore.

Operating profit or EBITDA at Rs 1,136.8 crore, while margin at 9.7 percent.

The average revenue per user (ARPU) at Rs 89 against Rs 88, QoQ.

Deutsch Bank has maintained buy call on the stocks with target at Rs 70 per share.

The merger is progressing with positive revenue outlook and cost synergies. The results should allay some of the investor concerns, said Deutsch Bank.

The revenue declined has slowed but trending up in December 2018 and January 2019.

CLSA has maintained sell call on Vodafone Idea with target at Rs 25 per share.

This is an encouraging start by the merge company as the revenue and EBITDA surprised positively, said CLSA.

The positive surprise was led by minimum ARPU plans, while forecast EBITDA to rise over 4x during FY19-21, it said.

At 11:56 hrs Vodafone Idea Limited was quoting at Rs 32.30, up Rs 2.50, or 8.39 percent on the BSE.

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First Published on Feb 7, 2019 12:26 pm
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