Vi (Vodafone-Idea) has finally performed better as it narrows its loss to Rs. 7,203.4 crore in the Q2 FY21. Vi had posted a loss of Rs. 50,921.9 crore in Q2 of the last financial year. Besides, the company increased its ARPU to Rs. 119 from Rs. 114 in the Q1 of this financial year.
“While we continue to face covid-19 induced challenges, Q2FY21 showed signs of recovery with a gradual improvement in economic activities. We are executing on our strategy and our cost optimization exercise has already started to yield incremental savings,” said Ravinder Takkar, managing director and chief executive, Vodafone Idea.
However, the company has lost eight million subscribers and revenue from operations. The user base has declined to 271.8 million from 279.8 million during the quarter.
Vi has also announced that it is planning to raise Rs. 25,000 crore to pay the debt and to meet expenditure, which analysts believe that it will help the telco for only two years. Apart from raising money, the company has announced that it is interacting with the government to discuss the ongoing situation.
“We continue to interact with the government seeking long term solutions to the critical challenges, which the industry faces,” Takkar added. Notably, the company has to pay more than Rs. 50,000 crore dues to the government in 10 years.
Vi Strategy To Reduce Loss: Details
It seems that a new brand identity is helping the operator to reduce its losses. The company has managed to reduce its cost as it has completed the network integration procedure. In addition, to retain its customers the company has launched several plans at affordable prices. Also, the company has revamped its application and launched several benefits for its customers, but still, it is losing customers. So, it would be interesting to see how Vi will arrest this loss in the future.