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Why did Vodafone Idea shares jump 17 percent?

Chairman of Aditya Birla Group Kumar Mangalam Birla reportedly met with Telecom Minister Ashwini Vaishnaw. The stock on September 2 closed at Rs 7.14, up Rs 1.05, or 17.24 percent on the BSE

September 03, 2021 / 08:19 AM IST
 
 
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Vodafone Idea share price surged more than 17 percent on September 2 after the Chairman of Aditya Birla Group (ABG) Kumar Mangalam Birla reportedly met with Telecom Minister Ashwini Vaishnaw.

VIL closed at Rs 7.14, up Rs 1.05, or 17.24 percent on the BSE. It touched an intraday high of Rs 7.29.

The meeting comes at a time when the government is planning some relief measures for the telecom sector.

According to CNBC-TV18, Birla spoke with Vaishnaw on the health of the telecom sector and discussed the urgent need for government intervention. Last month, Birla stepped down as a chairman of the cash-strapped telco.

The company had a total debt was Rs 1.91 lakh crore. This comprises deferred spectrum payment obligations of Rs 1,060.1 billion and AGR liability of Rs 621.8 billion that are due to the government.

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It owes banks and financial institutions Rs 234 billion. Cash and cash equivalents were Rs 9.2 billion.

The company had reported a loss of Rs 7,319.1 crore for the first quarter of FY 2021-22.

VIL in its quarterly report (April-June 2021) stated that the revenue declined by 4.7 percent QoQ to Rs 91.5 billion on account of slowdown in economic activities due to lockdown/restrictions in several districts during the severe second wave of COVID-19.

On a reported basis, EBITDA for the quarter was Rs. 37.1 billion, with EBITDA margins at 40.5 percent vs 45.9 percent in Q4FY21, said the firm. However, its net worth stands at negative Rs 455,409 million.

Also Read - Vodafone Idea dilemma: With Rs 1.8 lakh crore in debt, here's how banks with exposure may get impacted

The share touched a 52-week high of Rs 13.80 and a 52-week low of Rs 4.55 on 15 January, 2021 and 05 August, 2021, respectively.

Currently, it is trading 48.26 percent below its 52-week high and 56.92 percent above its 52-week low.
Moneycontrol News
first published: Sep 2, 2021 04:09 pm

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