Vodafone Thought share value jumped practically 4% on Wednesday, after the telecom firm’s sturdy rebuttal towards GST fee. Vodafone Thought shares gained as a lot as 3.96% to ₹8.39 apiece on the BSE.
Vodafone Thought has acquired an order beneath the Central Items and Companies Tax (CGST) Act, 2017, dated February 18, requiring the fee of penalty and curiosity.
The order, issued beneath Part 73 of the CGST Act, pertains to alleged extra availment of Enter Tax Credit score and different issues for the monetary 12 months 2020-21. It confirms a penalty of ₹97,16,875, together with the relevant tax demand and curiosity.
Nevertheless, Vodafone Thought has refuted the claims made within the GST discover and said that it’s going to pursue acceptable measures for rectification or reversal.
“The utmost monetary influence is to the extent of tax demand, curiosity and penalty levied. The Firm doesn’t agree with the Order and can take acceptable motion(s) for rectification/ reversal of the identical,” Vodafone Thought stated in a inventory trade submitting.
Vodafone Thought Q3 Outcomes
Vodafone Thought narrowed down its web loss to ₹6,609.3 crore within the third quarter of FY25 from a lack of ₹7,175.9 crore within the earlier quarter. The corporate’s income in Q3FY25 rose 1.7% to ₹11,117.3 crore from ₹10,932.2 crore, quarter-on-quarter (QoQ). Common Income Per Person (ARPU) throughout the December quarter elevated to ₹173 from ₹166, QoQ.
On the operational degree, EBITDA grew 3.6% to ₹4,712.4 crore from ₹4,549.8 crore, whereas EBITDA margin was at 42.4% versus 41.6%, QoQ.
Vodafone Thought continues to lose market share to friends on account of decrease ARPU translation, given its inferior subscriber combine and elevated subscriber churn.
“Regardless of the doubtless capex, we imagine gaining again subscribers can be a tall ask for Vodafone Thought, given its friends’ superior free money circulate technology and deeper pockets. Additional, we imagine Vi’s community investments stay contingent on debt increase, which in flip depends on continued help or reduction from the Authorities of India ( ₹44,000 crore+ annual repayments to GoI ranging from 1HFY26). Stabilization of the subscriber base, together with additional reduction from GoI, stays crucial for Vodafone Thought’s long-term survival,” Motilal Oswal stated.
The brokerage agency minimize its FY26-27 EBITDA estimates for Vodafone Thought by 7-8% on decrease subscriber and ARPU assumptions. It downgraded Vodafone Thought shares to ‘Promote’ from ‘Impartial’ and minimize the goal value of ₹5 per share.
At 12:50 PM, Vodafone Thought shares have been buying and selling 2.73% greater at ₹8.29 apiece on the BSE.
Disclaimer: The views and suggestions made above are these of particular person analysts or broking corporations, and never of Mint. We advise traders to test with licensed consultants earlier than making any funding selections.
