Vodafone Idea share price dips 7% on weak Q1 result; CLSA retains underperform

Vodafone Idea (Image: Reuters)

Vodafone Idea share price declined 7 percent in early trade on August 7 after company posted a weak set of numbers for the quarter ended June 2020.

The company on August 6 reported a consolidated net loss of Rs 25,460.20 crore for the quarter ended June 30, 2020, against a loss of Rs 4,873.90 crore for the corresponding quarter a year ago.

Consolidated revenue for the period stood at Rs 10,659.3 crore, down 5.42 percent from Rs 11,269.9 crore reported in Q1 FY20.

Sequentially, the company's revenue for the quarter declined by 9.3 percent impacted by the nationwide lockdown. EBITDA came at Rs 4,098.4 crore while EBITDA margin stood at 38.5 percent.

CLSA has retained underperform rating on the stock and cut target to Rs 8.40 from Rs 9.20 per share.

The Q1 ARPU was down to Rs 114 led by the subscriber loss. The voice traffic declined 6 percent, while data traffic was up 11 percent QoQ.

CLSA has cut FY21-22 forecasts by 1-5 percent. The EMI to be 30 percent of cash EBITDA even if 20-year is given for AGR payment, reported CNBC-TV18.

At 09:23 hrs, Vodafone Idea Limited was quoting at Rs 8.15, down Rs 0.10, or 1.21 percent on the BSE.