- Thursday, April 18, 2024
By: Radhakrishna N S
BRITISH telecom giant Vodafone may exit from India following the company’s growing losses, reports said.
According to media reports, the British firm is ready to “pack up and leave any day now.”
The raising operational losses and declining market capitalisation are negatively impacting the balance sheet of Vodafone-Idea joint venture.
The issues being faced by the telecom firm have also turned into hurdles for any fund-raising opportunities for it.
It is also losing thousands of customers every month putting further pressure on the company’s operations.
The Berkshire headquartered business witnessed a net loss of Rs 40.6701 billion (£442 million) in the first quarter ended in June, higher when compared with a net loss of Rs 27.5760bn (£300m) during the same period last year.
Vodafone’s stock market value has been witnessing a declining trend after the merger of Vodafone’s Indian arm and Indian business Aditya Birla Group-owned Idea Cellular.
The company recently said that it continues to pay all its debts as per the schedule and has not approached any lender for debt recast.
It added that the business continues to pay the debt as and when dues come.
Meanwhile, Vodafone-Idea has been ordered by the India’s top court to pay £3.1bn last week.
The country’s beleaguered telecom companies were dealt a blow after being told by the court to pay a whopping £10.1bn bill.
After a two-decade legal wrangle, the Indian supreme court ruled that telecom firms had to pay a combined £10.1bn in the past spectrum and licensing fees.
Vodafone has said that it could also look at filing a review petition on the court’s order.
