Vodafone Idea Limited (Vi) has reported its financial results for the first quarter (Q1) of the financial year 2024-25 (FY25). The company’s revenue for the quarter stood at Rs 105.1 billion, a decline of 1.4 per cent on a year-over-year (YoY) basis.

The revenue from operations decreased by 1.3 per cent from Rs 106,555 million in Q1 FY24 to Rs 105,083 million in Q1 FY25. The operational expenses (Opex) fell from Rs 64,985 million in Q1 FY24 to Rs 63,036 million in Q1 FY25, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter grew by 4.2 per cent YoY compared to Rs 20.2 billion in Q1 FY24 to Rs 21.0 billion. Further, EBITDA, on a reported basis, stood at Rs 42 billion.

The company’s net loss narrowed down to Rs 64,321 million in the reported quarter from Rs 78,400 million in the previous corresponding quarter.

The telco further reported that the average revenue per user (ARPU) improved to Rs 146, up 4.5 per cent from Rs 139 in Q1 FY24, driven by changes in entry-level plans and subscriber upgrades. Capital expenditure (Capex) for the quarter amounted to Rs 7.6 billion. Additionally, the 4G subscriber base increased to 126.7 million, up from 122.9 million in Q1 FY24.

The total debt from banks and financial institutions stood at Rs 46.5 billion, with optionally convertible debentures (OCDs) amounting to Rs 1.6 billion as of June 30, 2024. Over the past year, the company successfully reduced its debt from banks and financial institutions by Rs 45.5 billion, down from Rs 92 billion in Q1 FY24.

As of June 30, 2024, the company’s cash and bank balance stood at Rs 181.5 billion.

Commenting on the news, Akshaya Moondra, chief executive officer, Vi, said “Post the recent equity raise, we are in the process of expanding our 4G coverage and capacity as well as launch of 5G services. Some capex has already been ordered and under execution, basis which we expect 15 per cent increase in our data capacity and an increase in 4G population coverage by 16 million by end Sep’24. Our current capex needs are being met out of equity funds. We are engaged with our lenders for tying up debt funding towards the execution of our network expansion with a planned capex of Rs. 500 to 550 billion over next 3 years. The recent tariff intervention is a step in the right direction for the industry to move towards better return on investment, as also to improve cash generation to support the large investment requirements. However, further tariff rationalisation is needed for the industry to fully cover its cost of capital.”