Not surprisingly, Vodafone Idea is the top loser on the BSE; from its close of Rs.4.48 yesterday, it opened weaker at Rs.4.15 and went down to an intraday low at Rs.3.92, which is not too far from its 15% LC of today at Rs.3.81.
Two reasons for this – firstly it posted a very poor set of earnings for Q3FY20 where the question is again being asked about its ability to stay afloat. The company posted a loss of Rs.6439 crore v/s loss of Rs.50,922 crore (QoQ) – this higher loss in Q2 was on account of Ts.25,678 crore provided for the AGR dues payable to the Govt. The loss in Q3 was much higher than what most expected. Revenue from operations rose 2% only because it hiked its tariff by an average of 30%.
The second reason – the Supreme Court (SC) has initiated contempt cases against the telecom companies, summoning their directors to face the contempt.
The SC has point blank refused any relief to the companies; in fact it has asked the companies to pay up before 17th of March, the date on which the directors have been summoned to the court.