Shares of Vodafone Idea Ltd rose up to 3.80 per cent in Friday's trade to Rs 13.65 level. The sharp uptick came in spite of the fact that the telecom operator's consolidated loss after tax widened to Rs 7,675 crore during the fourth quarter (Q4 FY24). The company's consolidated revenue, however, moved 0.7 per cent higher on a year-on-year (YoY) basis to Rs 10,607 crore for the quarter ended on March 31, 2024.
Voda Idea's 4G subscriber base grew to 12.63 crore as on March 31, 2024, from 12.26 million a year ago. But its overall subscriber base fell about 6 per cent to 21.3 crore. The telco's average revenue per user (ARPU), a key performance metric for telecom firms, rose to Rs 146 from Rs 135 a year earlier.
On debt fund raise, Voda Idea said, "We are in discussions with consortium of banks to raise up to Rs 25,000 crore and additional non-fund based facilities of up to Rs 10,000 crore. Post the Telecom reforms package in September 2021, our bank exposure has reduced by around Rs 34,600 crore."
The equity funding, debt funding including non-fund based facilities are to be utilised primarily towards capex which is expected to be in range of Rs 50,000 to 55,000 crore over next 3 years, it added.
In April, Voda Idea had raised Rs 20,000 crore through equity, as part of a larger fundraising plan with an aim to launch its 5G services. The telecom firm's CEO Akshaya Moondra said that the 5G rollout could cover 40 per cent of its overall revenue base in the next 24-30 months.
On technical setup, support on the counter could be seen at Rs 12.95, followed by Rs 12.70, Rs 12.20 and Rs 12.10 levels.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "For now, Rs 12.70 level has substantially supported the counter, and the view remains intact until it manages to hover above the same. On the higher end, stiff resistance is placed around the Rs 14-14.50 zone, and a sustainable breach could only trigger a fresh round of traction in the comparable period."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Voda Idea shares can hit an upside target of Rs 14.50 in the near term. Keep stop loss placed at Rs 12.20."
Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher, said, "Rs 12.10 level remains crucial support zone. A decisive breach above Rs 14.50-14.70 levels is necessary to further strengthen the trend and establish conviction for a further rise. The next higher targets would be between Rs 16.30 and Rs 18."
AR Ramachandran from Tips2trades said, "Vodafone Idea stock price looks slightly bullish on daily charts with support at Rs 12.95. A daily close above resistance of Rs 14.4 could lead it to a target of Rs 18 in the near term."
Vodafone Idea was formed in 2018 when Vodafone Group merged its India business with Idea Cellular.