Vodafone Idea stock price surges 25 pct despite Q2 loss

HIGHLIGHTS

• Vodafone surged over 25 percent despite the company posting a tremendous loss of Rs 50,921 crore, highest ever loss posted by any Indian corporate, for the September quarter.
• The loss included the liability arising out of the Supreme Court order in the adjusted gross revenue case.
• Bharti Airtel on Thursday posted a staggering Rs 23,045 crore net loss for the second quarter ended September 30 due to the ruling on statutory dues but the stock performed well in markets.

Shares of Vodafone Idea on Friday surged over 25 percent despite the company posted a tremendous loss of Rs 50,921 crore - highest ever loss posted by any Indian corporate - for September quarter. On the BSE, the stock witnessed a jump of more than 25 percent to Rs 3.70 at around 2:30 pm. The stock moved up by similar margins on the BSE in early trade. It was trading at Rs 3.70.

Telecom operator Vodafone Idea on Thursday reported consolidated loss of Rs 50,921 crore - highest ever loss posted by any Indian corporate - for the second quarter ended September 30, on account of liability arising out of the Supreme Court order in the adjusted gross revenue case.

Bharti Airtel on Thursday posted a staggering Rs 23,045 crore net loss for the second quarter ended September 30, due to provisioning of Rs 28,450 crore in the aftermath of the Supreme Court ruling on statutory dues. However, analysts said that Bharti Airtel has performed better than expected amid a challenging environment.

"Bharti posted strong operational performance with 1.9 percent Q-o-Q revenue growth and 190bps Q-o-Q EBITDA margin expansion with a strong performance in India as well as Africa. While 4G subscriber addition was also robust at 7.9 million, ARPU was steady at Rs 128. Consistently strong operational performance underscores the company's ability to execute amidst a challenging environment," Edelweiss Securities Ltd said.

Amidst uncertainties with respect to the government's stance on AGR-related liabilities, Bharti Airtel is relatively well placed considering Rs 188 billion cash on books and its ability to raise requisite capital, it added.