Tuesday, January 19, 2021

Vodafone Idea shares plummet, group shares hit too

- Advertisement -

Vodafone Idea shares plummet, group shares hit tooMumbai, July 29 (IANS) Vodafone Idea shares on Monday fell sharply after the Q1 results were announced, erasing over Rs 7,000 crore of its market cap in just a day.

Vodafone Idea shares hit all-time low level over the sudden revenue deterioration reported in its quarterly results, reflecting the stress in the Indian telecom sector.

Selling was seen in other group companies, which saw a total decline of over Rs 17,000 crore.

Grasim Industries slipped over 9 per cent and Aditya Birla Capital by over 4 per cent. Others like Aditya Birla Money, UltraTech Cement, and Hindalco Industries fell in the range of 1 to 3 per cent.

READ ALSO:  Ayodhya cheered as Amit Shah announced temple will begin in 4 months

The sell-off of Vodafone Idea shares came on the back of investor concerns on the stability of the company and saw its scrips fall as much as 29 per cent on the BSE before closing 27.03 per cent lower at Rs 6.75 apiece.

JM Financial, in its investor note on Vodafone Idea, said that the company’s key performance indicators (KPIs) show “eroding consumer mind-share and perception, driven primarily by its 4G coverage/capacity deficit relative to (Airtel) Bharti and Jio”.

READ ALSO:  Next ICC chairman shouldn’t be from ‘Big Three’: Ehsan Mani

Evaluating the results, the brokerage firm said that Vodafone Idea reported a “sudden revenue deterioration”, which could have panicked the investors on Monday.

Vodafone Idea had on Friday reported a loss of Rs 4,873.9 crore in the June quarter against the Rs 4,881.9 crore loss in the previous quarter. Its revenue fell to Rs 11,269.9 crore as against Rs 11,775 crore in the March quarter.

The brokerage firm highlighted the sharp decline in Vodafone Idea’s subscriber base, which dropped by 14 million (quarter-on-quarter).

READ ALSO:  Air India to raise Rs 6,150 crore in short term loan for aircraft refinancing
India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News


Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

AWS to power IT Ministry’s quantum computing applications lab

New Delhi, Jan 19 (IANS) The Union Ministry of Electronics and Information Technology (MeitY) on Tuesday launched a quantum computing applications lab in the...

Adverse events following immunisation low, 2 deaths unrelated: Govt

New Delhi, Jan 19 (IANS) The Union Health Ministry on Tuesday said that a total of 4,54,049 people have been inoculated since the commencement...

India hopes for relaxed US visa regime under Biden

By Aarti Tikoo Singh (IANS) One of the biggest policy issues which will set the tone for the US-India strategic relationship under the new...

Farm laws: SC-appointed panel holds maiden meeting

New Delhi, Jan 19 (IANS) A committee appointed by the Supreme Court to deliberate on issues related to the three new central farm laws...