Vodafone Idea zooms 9% on heavy volumes, hits highest level since May

A combined 206 million equity shares of the company changed hands within an hour of trading, as against an average of sub 200 million shares that traded in the past two weeks

Shares of Vodafone Idea rallied 9 per cent to Rs 9.92 on the BSE in Wednesday’s intra-day trade, in an otherwise weak market, amid heavy volumes. The stock of the telecom services provider was trading at its highest level since May 31, 2022, when it had hit a high of Rs 10.23 in the intra-day deals.

At 10:22 am, Vodafone Idea was traded 7 per cent higher at Rs 9.81, as compared to 0.49 per cent decline in the S&P BSE Sensex. A combined 206 million equity shares of the company changed hands on the NSE and BSE within an hour of trading. On an average, a combined sub 200 million shares traded on the counter in the past two weeks, the exchanges data shows.

In the April-June quarter (Q1FY23) quarter, Vodafone Idea reported a net loss of Rs 7,297 crore, as against Rs 7,319 crore in the year-ago period. The company's revenue from operations rose 14 per cent to Rs 10,410 crore as against Rs 9,152 crore in Q1FY22. Average revenue per user (ARPU) for the quarter stood at Rs 128 versus Rs 104 in Q1FY22, up 23.4 per cent aided by tariff hikes.

Vodafone Idea has completed the first tranche of fund raising in the form of preferential equity contribution of around Rs 4,940 crore from its promoters, including the incremental infusion of around Rs 440 crore by Vodafone Group in July 2022. The company said it continues to remain engaged with lenders and investors for further fund raising.

The company will continue to focus on improving ARPU by driving UL/4G penetration as well as digitalization of customer servicing and distribution channels with an aim to provide the best of customer experience to retail and enterprise customers. The company will remain focused on providing superior data and voice experience and building a differentiated digital experience with focus on increasing 4G subscribers.

"All these initiatives coupled with the significant liquidity provided by the Government reforms package and the recent tariff hikes will enable the Company to make network investments and compete effectively to improve its competitive position," Vodafone Idea said in its FY22 annual report.