Vodafone Idea share Price Today: Brokerages raise concern over operationlity of Vi as Q4 losses widen, stock slips 15% in early trade

As the Vodafone Idea (Vi) net loss widened, the brokerage firms not only downgraded the price target for this telecom share but also raised serious concerns regarding company's operationability. 

The stock on Thursday tumbled by 15 per cent to Rs 8.46 per share on the BSE intraday trade

The telecom company on Wednesday reported a net loss of Rs 7,022.8 crore in the March-ended quarter as compared to Rs 4,532.4 crore in the previous quarter. Vi had posted an Rs 11,643 crore net loss in the same quarter last year (year-on-year basis).

In this regard, CLSA maintaining an Underperform stance saied the decline in subscribers in-line and 4G additions encouraging. The brokerage firm said the AGR headache for a financial crisis when annual payments come due.

CLSA further added a review of AGR and tariff hikes inevitable, else sector is headed toward a duopoly, while raises the price target for Vi to Rs 10 per share from Rs 9 apiece.

Vi has large repayments due starting December 2021; the telecom company may have a Rs 23,400 crore cash shortfall until April 2022, Goldman Sachs says while maintaining SELL call on the stock.

The brokerage cut the price target to Rs 3 per share while pointing out that capex to remain under pressure resulting in continued market share loss. Vi has lost another 130 bps of revenue market share in the March-ended quarter, it added.

The telecom company's total revenue from operations fell around 12 per cent to Rs 9,607.6 crore as compared to Rs 10,894 crore in the third quarter of FY21. It has posted an exceptional loss of Rs 974.3 crore during the fourth quarter.

Vodafone Idea in its filing to exchanges said, “The company’s financial performance has impacted its ability to generate the cash flow that it needs to settle/ refinance its liabilities and guarantees as they fall due, which along with its financial condition is resulting in material uncertainty that casts significant doubt on the company’s ability to make the payments mentioned therein and continue as a going concern.”

At around 10:00 am, the shares of Vi were trading near seven per cent lower to Rs 9.27 per share, as compared to 0.01 per cent rise in the BSE Sensex today.