Vodafone Idea Ltd Research ReportQ3FY21

In Q3FY21, Vodafone Idea’s (VIL) reported revenues were up 1% QoQ to | 10,894 crore, with ARPU growth of ~1.7% QoQ to | 121. The subscriber base declined by ~2 million to 269.8 mn, with churn rate reducing to 2.3%. Reported EBITDA margins were up 86 bps QoQ to 39.3%, on account of change in accounting of subscriber acquisition costs that aided reported EBITDA by ~| 330 crore. The EBITDA margin (ex-Ind-AS 116 impact), adjusted for one-offs was at 16.3% vs. 15.5% in Q2. The loss was at | 4532 crore, aided by lower depreciation costs and one-off exceptional items of | 1696 crore (benefits of | 2119 crore towards profit on sale of stake in Indus Tower partly offset by charge towards integration related costs, provision for additional depreciation and one-time spectrum charges).