Vodafone Idea share falls for second day, down 1.3% after Supreme Court rejected ₹30,000 crore AGR dues waiver plea

Vodafone Idea's share price continued to fall for second consecutive day on Tuesday after the Supreme Court rejected a petition by Vodafone Idea that sought the court's help in getting the government to waive its telecom adjusted gross revenue (AGR) dues of ₹30,000 crore.

Vodafone Idea stock was down over 1.34 per cent in Tuesday's trading session to ₹6.63 apiece. Telecom operator stock had fallen over 12 per cent during the Monday's session

At 1:35 p.m. (IST), Vodafone Idea shares closed 8.68 per cent lower at ₹6.73 after Monday's stock market session, compared to ₹7.37 at the previous market close. The telecom major's shares hit their intraday low of ₹6.47 during the afternoon session of the Indian stock market. 

According to a Reuters report, the Department of Telecommunications (DoT) on April 29 denied a request from Vodafone Idea CEO Akshaya Moondra for relief from interest and penalties related to a $9.76 billion dues claim.

“The request cannot be considered,” the communications ministry said, even though Moondra had cautioned that the future of India’s third-largest telecom company was in jeopardy.

After facing rejection, Vodafone Idea—co-owned by the UK’s Vodafone Group and India’s Aditya Birla Group—approached the Supreme Court on Thursday. The telecom operator requested the court to instruct the government to act in the "public interest," highlighting the vital importance of the telecom industry. The case is expected to be heard later this week.

Vodafone Idea has been under financial pressure since a 2019 Supreme Court verdict broadened the scope of adjusted gross revenue (AGR), significantly increasing telecom companies' liabilities. Although the government converted a portion of the company’s dues into equity, acquiring a 49% stake, Vodafone Idea continues to struggle financially.

Vodafone Idea Q4 results 2024 highlights

Vodafone Idea (Vi) reported a net loss of ₹7,674.6 crore for the fourth quarter (January–March) of FY24, higher than ₹6,418.9 crore in the same period last year, mainly due to rising expenses and stagnant revenue.

Compared to the previous quarter, the company's net loss also grew by 9.85%, up from ₹6,986 crore.

Finance costs for the quarter rose significantly to ₹6,280.3 crore, a 25.5% jump from ₹5,004 crore in Q4 FY23. For the full financial year FY24, Vodafone Idea’s total net loss widened to ₹31,238 crore, an increase of 6.6% from ₹29,301 crore in FY23.

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