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HomeTelecomVodafone Thought Cleared Financial institution Dues Quick in FY24

Vodafone Thought Cleared Financial institution Dues Quick in FY24

vodafone idea cleared bank dues fast fy24

Vodafone Thought (Vi) cleared financial institution dues fairly quick in FY24. Vi’s debt from banks and monetary establishments stood at Rs 111.3 billion in This fall FY23. In FY24, the telco diminished it by Rs 70.9 billion, lowering the overall debt within the section to Rs 40.4 billion. Be aware that that is simply the debt from banks and monetary establishments. The debt in direction of the federal government stood at Rs 2,034.3 billion (to place into context for simpler understanding, that’s greater than Rs 2 lakh crore).

The cash-strapped telco does not need to default on paying off banks and monetary establishments’ debt for 2 causes. The primary purpose is as a result of it needs to boost extra debt from them and keep away from late fee curiosity which can be an added burden. The second purpose is that banks and monetary establishments can drag Vi to the chapter court docket.

Learn Extra – Vodafone Thought to Begin Rolling out 5G after Six Months: CEO

As a result of heavy give attention to dues funds, Vi cannot use that cash for capex (capital expenditure) on cell networks. Nevertheless, with the current fundraising of Rs 20,000 crore (in complete from a promoter group firm and FPO), the telco is about to broaden the 4G capability and protection to provide customers a greater expertise.

The money and financial institution steadiness of Vi stood at Rs 1.7 billion on the finish of March 31, 2024, which is about Rs 170 crore. The telco has many commitments in direction of distributors, tower corporations, authorities, and banks to repay dues. Through the traders’ name, Vi mentioned that it’ll use the cash it earns by prospects to repay dues and the cash raised by fairness for capital expenditure. That is the technique Vi needs to make use of to make sure that it will possibly maintain going within the long-run. The telco’s revenues have not grown a lot over the past 12 months, and its EBITDA proportion has additionally largely stayed flat.

Learn M0re – Vodafone Thought Struggled to Add 4G Subscribers in FY24

Vi wants to chop prices and enhance margins within the short-term to slim losses. On the identical time, the telco is eyeing to boost tariffs within the close to future to spice up ARPU (common income per person) and improve total revenues.



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