Mumbai, 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.
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”.
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).