Vodafone Idea to make significant investments to roll out 5G networks: Kumar Mangalam Birla
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Vodafone Idea will make significant investments to roll out 5G networks and further expand 4G coverage in India, said Kumar Mangalam Birla, Additional Director, Vodafone Idea at the India Mobile Congress.
Vodafone Idea is yet to roll out 5G networks commercially while rivals like Reliance Jio, Bharti Airtel now have 5G coverage across most parts of the country, as per reports.
Birla added that the Vodafone Idea team has worked diligently to prepare the core network for 5G over the last year.
Motilal Oswal Financial Services said in a research that Vodafone Idea’s net debt remained high at Rs 2.1t. Out of this, Spectrum and AGR debt accounts for Rs 2t (95 per cent of total debt) and market debt for Rs 79b (4 per cent).
Capex spend remained at Rs 5.2b versus Rs 4.5b in 1QFY24. Bharti/RJio’s annual network capex has been Rs 280b/Rs 400b, significantly above VIL, despite higher capacity.
The research report said that the group financial performance has adversely impacted its ability to generate CF. The net WC (excluding ST borrowings, lease liability, accrual towards litigation) stands negative at Rs 218b.
Debt payable by September 2024 is Rs 71.7b and the total net debt stands at Rs 2.1t. As of September 30 2023, Rs 31.9b has been classified as the current maturity of LT liabilities due to non-fulfillment of specific covenant clauses, the report said.
