Meanwhile, net losses for the company could be in the range of Rs 7,489 – Rs 8,100 crore, the estimates revealed.
The estimates have been given by Nomura, Kotak Institutional Equities, JM Financial and Nuvama Institutional Equities.
The highest revenue estimate is given by JM Financial while the lowest is by Nomura. As for net losses, the highest decline is estimated by Nomura which it said could widen on a YoY basis while Kotak sees losses to come down year-on-year.
The company will be announcing its quarterly earnings on Monday, August 12.Here’s what brokerages recommended:
Nomura
Japanese brokerage Nomura sees net losses for the reporting quarter at Rs 8,100 while a revenue of Rs 10,600 crore is expected to remain flat on the YoY and QoQ basis.
Earnings Before, Interest, Tax, Depreciation and Amortisation (EBITDA) is seen at Rs 4,400 which could go up by 5% on a YoY basis and 1% on a sequential basis. EBITDA margin for the reporting quarter is pegged at 41% versus 39% in Q1FY24 and 40.9% in Q4FY24. The Average Revenue Per User (ARPU) for the reporting quarter is estimated at Rs 148, up from Rs 139 in Q1FY24 and Rs 146 in Q4FY24.
Kotak Equities
Kotak Equities expects Vodafone Idea’s net loss to narrow to Rs 7,489 crore in the June ended quarter on the YoY and QoQ basis. It is expected to come down by 4.4% YoY and 2.4% QoQ from Rs 7,840 crore in Q1FY24 and Rs 7,677 crore in Q4FY24. Net sales in the reporting quarter is expected at Rs 10,618 crore which will likely be a 0.3% YoY decline while a flat (0.1%) QoQ uptick.
Earnings Before, Interest, Tax, Depreciation and Amortisation (EBITDA) for the April-June quarter is seen at Rs 4,225 crore which could go up by 1.6% YoY and down by 2.6% YoY. Meanwhile, Earnings before Interest and Taxes (EBIT) loss is pegged at Rs 1,493 crore. EBITDA margin is seen at 39.8% which could be a 77 bps YoY uptick and a 109 bps QoQ climbdown.
“We expect QoQ flat revenue as continued subscriber decline would likely offset marginal QoQ ARPU uptick. Reported EBITDA likely to decline 3% qoq on sequentially higher network opex,” a Kotak note said.
“We model EoP subscriber base to decline by 3 million QoQ (versus -2.6 mn qoq) to 209.6 million and ARPU to increase 1% QoQ to Rs 148/month likely on continuing subscriber mix improvements,” the note said further.
JM Financial
JM expects the company’s net losses at Rs 7,785 crore while a marginal revenue uptick is seen at Rs 10,709 crore. This brokerage sees a 0.5% YoY and 1% QoQ growth.
The EBITDA is pegged at Rs 4,339 crore in the April-June quarter which may go up by 4.4% and 0.1% on a YoY and QoQ basis respectively.
“We estimate a loss of 2.1 million overall subscribers in 1QFY25 versus 2.6 million subscriber loss in 4QFY24. However, we expect MBB subscriber addition to continue to be muted at 1 million (though TRAI’s April 2024 subscriber data showed 1.3 million loss in MBB subscribers),” a JM note said
Nuvama
Vodafone Idea revenue is likely to decline 0.7% QoQ, backed by flattish ARPU and continued subscriber loss. EBITDA margins to contract 70 bps QoQ.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
