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Communications

Vodafone Idea Ltd.

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 INRUSD
Revenue449,575M6,340.43M
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
EBITDA149,125M2,103.13M
Diluted EPS-27.26-0.38
Dividends Per Share----
Total Assets2,269.19B29,995.48M
Total liabilities2,209.39B29,205.02M
Total equity59,799M790.45M
Operating cash flow-74,036M-1,044.14M
Currency in INRCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 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 2016Mar 2017Mar 2018Mar 2019Mar 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

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