Vodafone Idea Ltd.

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India's support to telecom industry unlikely to sustain Vodafone Idea Mar 18, 2020

Company Background

Idea Cellular is a major mobile phone service operator in India and ranked third in the country by subscriber numbers. It belongs to the Aditya Birla Group, one of the three largest conglomerates in India.

Founded in 1995, Idea was managed for some time as a company jointly owned by Birla, the Tata Group, another top Indian conglomerate, and the AT&T Group of the U.S. AT&T subsequently withdrew its capital from Idea and Tata sold its equity stake in 2006 because it established a telecom company.

As a result, Birla has placed Idea under its management. Idea acquired its rival Spice Communications in 2008 and has kept expanding its market presence to become India's third largest mobile carrier after Bharti Airtel and Vodafone. It has been winning new subscribers by promoting third-generation mobile phone services in rural areas.

Aditya Birla Nuvo, the core company of the Birla group, is Idea's biggest shareholder. Other group companies, such as Hindalco Industries and Grasim Industries, are also major stakeholders. The Birla group as a whole owns a nearly 40% stake in Idea.

Nearly 20% of Idea is also owned by the Axiata Group, a Malaysia telecom company.

Business Summary

Vodafone Idea Ltd. engages in the provision of telecommunication services. It operates through the following business segments: Mobility Services, International Long Distance, and Passive Infrastructure. The Mobility Services segment provides a system for mobile communications based mobile and related telephony services. The International Long Distance segment offers international long distance services. The Passive Infrastructure covers the passive infrastructure services. The company was founded on March 14, 1995 and is headquartered in Mumbai, India.

Financial Highlights

Mar 2020	INR	USD
Revenue	449,575M	6,340.43M
Gross Profit	-75,118M	-1,059.40M
Operating income	-94,439M	-1,331.89M
Income before tax	-621,523M	-8,765.45M
Net income	-738,781M	-10,419.16M
EBITDA	149,125M	2,103.13M
Diluted EPS	-27.26	-0.38
Dividends Per Share	--	--
Total Assets	2,269.19B	29,995.48M
Total liabilities	2,209.39B	29,205.02M
Total equity	59,799M	790.45M
Operating cash flow	-74,036M	-1,044.14M
	Currency in INR	Currency in USD

Historical Data

INR | USD

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020
Revenue	359,357.24M	355,606.11M	282,566.42M	370,273M	449,575M
Gross Profit	70,197.63M	37,942.99M	-11,526.46M	-84,945M	-75,118M
Operating income	57,735.06M	24,513.88M	-23,564.49M	-104,799M	-94,439M
Income before tax	38,284.47M	-12,850.61M	-68,215.81M	-184,461M	-621,523M
Net income	26,711.23M	-4,420.13M	-41,965.92M	-146,286M	-738,781M
EBITDA	120,295.80M	102,785.92M	60,526.47M	40,550M	149,125M
Diluted EPS	4.46	-0.74	-6.86	-21.16	-27.26
Dividends Per Share	0.36	0	0	0	--
Total Assets	801,255.02M	967,046.94M	985,771.65M	2,296.99B	2,269.19B
Total liabilities	565,750.15M	719,724.50M	713,147.05M	1,700.64B	2,209.39B
Total equity	235,504.87M	247,322.44M	272,624.60M	596,348M	59,799M
Operating cash flow	106,411.61M	76,807.30M	1,097.65M	6,101M	-74,036M

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020
Revenue	5,488.81M	5,303.03M	4,383.18M	5,293.94M	6,340.43M
Gross Profit	1,072.19M	565.83M	-178.79M	-1,214.49M	-1,059.40M
Operating income	881.84M	365.56M	-365.53M	-1,498.35M	-1,331.89M
Income before tax	584.75M	-191.63M	-1,058.16M	-2,637.31M	-8,765.45M
Net income	407.98M	-65.91M	-650.97M	-2,091.51M	-10,419.16M
EBITDA	1,837.39M	1,532.81M	938.88M	579.76M	2,103.13M
Diluted EPS	0.06	-0.01	-0.10	-0.30	-0.38
Dividends Per Share	0.00	0	0	0	--
Total Assets	12,099.43M	14,892.53M	15,114.16M	33,157.63M	29,995.48M
Total liabilities	8,543.17M	11,083.76M	10,934.19M	24,549.21M	29,205.02M
Total equity	3,556.26M	3,808.76M	4,179.96M	8,608.41M	790.45M
Operating cash flow	1,625.32M	1,145.40M	17.02M	87.22M	-1,044.14M

Valuation Measures

Mar 2020
PER	--
ROA	-32.35%
ROE	-225.18%
Operating margin	-21.00%
Profit margin	-164.32%

Key executives

Chief Executive Officer, Director & MD: Ravinder Takkar
Chief Operating Officer: Ambrish Pandey Jain
Chief Financial Officer: Akshaya Moondra
Chief Technology Officer: Vishant Vora
Secretary & Compliance Officer: Pankaj Kapdeo

Shareholders

Grasim Industries Ltd. (11.5%)
CK Hutchison Holdings Ltd. (8.4%)
Oriana Investments Pte Ltd. (7.4%)
Elaine Investments Pte Ltd. (2.9%)
Hindalco Industries Ltd. (2.6%)
Franklin Templeton Asset Management (India) Pvt Ltd. (1.6%)
IGH Holdings Pvt Ltd. (1.4%)
Aditya Birla Group (1.2%)
Vodafone Group Plc (0.9%)
The Vanguard Group, Inc. (0.9%)

Contact Details

Website:http://www.vodafoneidea.com
Address: Birla Centurion, 10th Floor, Century Mills Compound, Mumbai, 400030, India
Phone: +91.95.94003434

Related Companies

Vodafone Idea Technology Solutions Ltd.
Vodafone Business Services Ltd.
You System Integration Pvt Ltd.
Vodafone Idea Shared Services Ltd.
Vodafone m-pesa Ltd.
Idea Cellular Ltd. /Cellular Towers/
Idea Telesystems Ltd.
Swinder Singh Satara & Co. Ltd.
Vodafone India Foundation
Idea Cellular Services Ltd.
Idea Cellular Towers Infrastructure Services Ltd.
Idea Cellular Towers Infrastructure Ltd.
Vodafone Idea Communication Systems Ltd.
Vodafone India Ltd.
YOU Broadband India Ltd.
Spice Communications Ltd.
Escorts Telecom Ltd
RPG Cellcom
Escotel Mobile Communications Ltd.

Competitors

Mahanagar Telephone Nigam Limited
Bharti Airtel Limited
Reliance Industries Limited
Tata Communications Limited
GTL Infrastructure Ltd

Last Updated on 3 Aug, 2020