Vodafone Idea Limited (Vi) has announced the financial results for second quarter (Q2) FY22.

The company’s loss narrowed to Rs 71.32 billion during the quarter from Rs 73.19 billion in the first quarter (Q1) FY22.

Meanwhile, revenue for the quarter was Rs 94.1 billion, witnessing a growth of 2.8 per cent Q-o-Q, on account of accelerated economic activities and easing of lockdown/restrictions induced by severe second wave of Covid-19, which impacted Q1 F22. On a reported basis, earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was Rs 38.6 billion, with EBITDA margins at 41.1 per cent vs 40.5 per cent in Q1 FY22.

Further, capex spend for Q2 FY22 was Rs 13 billion vs Rs 9.4 billion in Q1 FY22. The total gross debt (excluding lease liabilities and including interest accrued but not due) as of September 30, 2021 stood at Rs 1,947.8 billion, comprising of deferred spectrum payment obligations of Rs 1,086.1 billion and AGR liability of Rs 634.0 billion that are due to the government and debt from banks and financial institutions of Rs 227.7 billion.

The subscriber base stood at 253 million against 255.4 million in Q1FY22, a decline of 2.4 million. However, the 4G subscriber base witnessed addition of 3.3 million, with overall 4G base now at 116.2 million. Subscriber churn has also improved to 2.9 per cent in Q2FY22 vs 3.5 per cent in Q1FY22. As Q1 FY22 witnessed significantly higher data usage during the lockdown, the Q-o-Q data volume growth remained moderate at 0.4 per cent. On a Y-o-Y basis, data volumes have witnessed strong growth of 27.1 per cent. Data usage per 4G subscriber is now at 14.5 GB/month vs 11.8 GB/month a year ago.

ARPU improved to Rs 109, recording a QoQ growth of 5.3 per cent from Rs 104 in Q1FY22. This quarter the operator had taken certain pricing initiatives to improve ARPU, in line with their stated strategy. It increased the entry level prepaid pricing plan from Rs. 49 to Rs. 79, in a phased manner, as well as increased the tariffs in some postpaid plans.

Vi also noted that after successfully achieving targeted merger opex synergies of Rs. 84 billion, the operator has undertaken the cost optimisation exercise across the company in line with the evolving industry structure and business model. Through several initiatives, Vi has achieved 80 per cent annualised savings on a run-rate basis by the end of Q2FY22 against the target of Rs. 40 billion.

Commenting on the results, Ravinder Takkar, managing director and chief executive officer, Vodafone Idea Limited, said, “We welcome the Government’s landmark reform package which addresses several industry concerns and provides immediate relief to the financial stress in the sector. We also appreciate the Government’s recognition of the telecom sector’s contribution in keeping the country connected during the pandemic. During the last quarter, we witnessed a recovery in our operating momentum as the economy has started to gradually open up aided by the ongoing rapid vaccination drive. We continue to improve our 4G subscriber base on the back of superior data and voice experience on Vi GIGAnet, India’s fastest mobile network, which is testified through consistent top rankings in Ookla and TRAI. We continue to focus on executing our strategy to improve our competitive position and win in the marketplace.”