Supreme Court orders Vodafone Idea to lose Rs 50,921 crore and Airtel Rs 23045 crore

Airtel made provision of Rs 28,450 crore and Vodafone Idea Rs 25,680 crore in the second quarter to pay the dues to the telecom department.

Airtel plans to pay Rs 62,187 crore and Vodafone Idea a total of 54,184 crore telecom departments.

(Commerce Rep) Mumbai, Ta. November 14, 2019, Thursday

India's leading telecom companies Vodafone Idea and Bharti Airtel recorded a record loss in the second quarter ended September 30, 2019.

Vodafone Idea reported a loss of Rs 50,921 crore in the second quarter of the financial year 2019-20 ending September 30. Bharti Airtel reported a loss of Rs 23,045 crore in the same period.

The Supreme Court order has had an impact on the company's adjusted gross revenue. It is noteworthy that Airtel had a net profit of Rs 119 crore in the same period last year. However, Airtel said the figures could not be compared as it implemented a new accounting system. However, Airtel's total revenue for the second quarter ended September 30 rose 4.7 percent to Rs 21,199.

Airtel has made provision of Rs 28,450 crore for the balance of adjusted gross revenue (AGR) payments in the second quarter of 2019-20. These include interest on principal amount of Rs 6164 crore, interest of Rs 12219 crore, penalty of Rs 3760 crore and penalty of Rs 6307 crore.

Speaking of Vodafone Idea, it lost Rs 4874 crore in the same period last year. In the second quarter of this year, Vodafone Idea's revenue increased 42 percent to Rs 11,146 crore.

Vodafone Idea estimates its liability will increase by Rs 44,150 crore following a Supreme Court ruling. Of which, in the second quarter, it has a provision of Rs 25,680 crore.

It is worth mentioning that in the wake of the Supreme Court verdict, Airteln has to pay Rs 62,187 crore to the Indian telecom department while Vodafone Idea has to pay Rs 54,184 crore to the telecom department.