Vodafone Idea Q3 Concall Top Takeaways: Large Capex Plan, No New Equity Infusion, Tariff Outlook

Vodafone Idea to Invest Rs 45,000 Crore Over Next Three Years

Vodafone Idea Ltd. plans to invest a massive amount of Rs 45,000 crore over the next three years to upgrade its infrastructure.

• Funding: The investment will be mostly funded by debt, as company executives told analysts after the third quarter earnings.
• Additional Investment: The new capex will be in addition to the Rs 18,000 crore already invested over the last six quarters.
• Total Investment: This totals over Rs 60,000 crore in a four to four-and-a-half-year period.

The debt-laden company is not looking at fresh equity infusion at this stage and believes its current funding roadmap, backed by bank loans, promoter support and adjusted gross revenue (AGR) relief, is sufficient to execute its three-year turnaround plan.

Turnaround Plan

• Sustained Customer Additions
• Increasing Cash Flow

Vodafone Idea received a breather from the government in December on payment of its AGR dues. The cabinet decided to freeze the company's Rs 87,695 crore in AGR dues and approved a payment plan for the company to clear them over FY32-41.

Future Plans

• Targeting Rs 25,000 crore in bank funding
• Targeting Rs 10,000 crore in non-funded facilities
• Achieving 4G parity with competitors across its 17 priority circles within two years
• Expanding 5G coverage across urban markets with populations of above 20,000 over the next 12–30 months

The telecom operator plans to achieve 4G parity with competitors across its 17 priority circles within two years and expand 5G coverage across urban markets with populations of above 20,000 over the next 12–30 months.

Share Price

Vodafone Idea share price settled 1% higher at Rs 9.94 on the BSE, compared to a 0.6% advance in the benchmark Sensex.

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