Vodafone Idea Q4 preview: Firm likely to post weak set of numbers; commentary on 5G launch plan eyed

Vodafone Idea Q4 preview, Vodafone Idea share price NSE: Vodafone Idea (Vi) shares finished flat, up 0.43 per cent or Rs 0.03 at Rs 6.99 apiece on NSE ahead of its March quarter results, due to be released later today. Analysts expect the telecom company to report a weak quarterly performance. According to Zee Business Research, Vodafone Idea's revenue is expected to decline by 0.7 per cent to Rs 10,550 crore against Rs 10,621 crore logged in Q3FY2023. The counter quoted Rs 7.10, up 2.16 per cent or Rs 0.15 on NSE. 

Vodafone Idea's earnings before interest, taxes, depreciation, and amortisation (EBITDA) are expected to decline by 1.1 per cent to Rs 4,135 from Rs 4,181 registered in the quarter-ago period. Further, the telecom company is likely to report a loss on a quarter-on-quarter (QOQ) basis to Rs 7,500 crore against Rs 7,990 crore logged in Q3FY2023, according to Zee Business Research.

Moreover, Vodafone Idea’s average revenue per user (ARPU) is estimated to improve by 0.7 per cent to Rs 136 from Rs 135 registered in the previous quarter on a better 4G mix. Investors will look out for the management’s commentary on capital investment and the 5G launch plan. 4 million net subscribers may be lost, the research added.

The Zee Business analysts peg Vodafone Idea’s margin — a key measure of profitability for a business — at 39.2 per cent as against 39.4 per cent on a QOQ basis. Vodafone Idea stock price has given a negative return of nearly 21 per cent in the last year (May 24, 2022). In comparison, the headline index Nifty 50 has rallied 14 per cent.

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