Vodafone Concept shares tank over 23% after firm stories widening of losses to Rs 6,439 cr in Q3; m-cap drops by Rs 2,988 cr

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New Delhi: Shares of Vodafone Concept (VIL) on Friday tumbled over 23 p.c after the corporate reported widening of losses within the third quarter of 2019-20 and following the Supreme Courtroom taking a robust observe of non-compliance of its order asking telcos to pay Rs 1.47 lakh crore in statutory dues.

The scrip plummeted 23.21 p.c to shut at Rs 3.44 on the BSE. In the course of the commerce, it dropped 27.45 p.c to Rs 3.25.

On the NSE, it tanked 22.22 p.c to shut at Rs 3.50.

The corporate’s market valuation additionally fell by Rs 2,988.03 crore to Rs 9,884.97 crore on the BSE.

Vodafone Concept on Thursday reported widening of losses to Rs 6,438.eight crore within the third quarter of 2019-20 towards Rs 5,004.6 crore a yr in the past, because the telco continued to sound out warnings on “material uncertainty” casting “significant doubt” on its means to proceed as going concern.

For the three months ended December 2019, the corporate’s complete revenue fell by 5 p.c to Rs 11,380.5 crore from Rs 11,982.eight crore a yr in the past.

The Supreme Courtroom on Friday directed the highest echelons of telecom corporations to clarify why contempt motion shouldn’t be taken towards them for non-compliance of its order to pay adjusted gross income (AGR) dues of Rs 1.47 lakh crore to the telecom division.

“The SC order directing the telecom companies to settle the pending AGR dues by March 17, 2020 puts further uncertainty on their operational sustainability, particularly that of Vodafone Idea. The latter’s ability to pay an amount of over Rs 55,000 cr by the stipulated date is uncertain given its current financial flexibility. While Airtel needs to pay an amount of Rs 35,500 cr, they have been able to raise funds in the recent past,” Suman Chowdhury – president – Scores at Acuité Scores & Analysis Restricted mentioned.

The order raised issues over banks’ publicity to AGR-hit telcos, primarily Vodafone Concept.

IndusInd Financial institution dropped 4.38 p.c, SBI declined 2.41 p.c, HDFC Financial institution 1.77 p.c and Axis Financial institution fell by 1.5 p.c.

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