Vodafone Idea Limited — Investor Meet, 21-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Vodafone Idea reported revenues of ₹109.3 billion for the quarter, up 4% sequentially, with customer revenue growth at 5.6%. The EBITDA, excluding Ind AS 116, rose to ₹23.2 billion, marking a 10.5% increase quarter-on-quarter, and the margin improved to 21.3%. With reported EBITDA at ₹45.5 billion, up 8.2% from the previous quarter, the EBITDA margin reached 41.6%. The company incurred a PAT loss of ₹71.8 billion, with total bank debt reduced to ₹32.7 billion from ₹78.3 billion a year ago.

**Future Outlook and Growth Drivers:** Management emphasized a strategic focus on network expansion, anticipating an ₹80 billion capex spend in H2FY25, after a successful ₹300 billion equipment procurement deal. The rollout of 5G services is set to begin in Q4FY25, aiming to cover a larger customer base and improve ARPU further.

**Order Book and Operational Updates:** The company completed extensive network upgrades, adding 42,000 4G sites—recording its highest in a quarter. This expansion boosted 4G data capacity significantly, underpinning future growth prospects.

**Analyst Q&A Insights:** Analysts probed subscriber retention issues, given recent tariff hikes and competitive pressures. Management acknowledged subscriber losses but highlighted early signs of a reversal in trends, citing increased network capacity and upcoming improvements in customer experience. Concerns regarding AGR liabilities and funding were prevalent, with government engagement ongoing. Analysts also inquired about future tariff hike strategies, linking them to sustainable profitability in the data market.

**Strategic Focus Areas:** The call underscored a commitment to customer experience through technology upgrades, increased capacity, and diverse service offerings, hinting at a broader strategic pivot towards becoming a comprehensive digital services provider.

**Investor Insight:** Given the solid financial performance, strategic expansion plans, and management's proactive engagement with both the government and key stakeholders, the current financial health and growth trajectory position Vodafone Idea favorably for a 'buy' perspective, although market volatility and subscriber recovery remain critical to watch.