VODAFONE IDEA Announces Quarterly Results (3QFY19); Net Profit Up 292.7%

Wed, 13 Feb

VODAFONE IDEA has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

VODAFONE IDEA Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-17*	3 Sep-18*	3 Dec-18*	QoQ Change	YoY Change
Net Sales	Rs m	65,096	76,635	117,648	53.5%	80.7%
Other income	Rs m	420	2,151	2,180	1.3%	419.0%
Turnover	Rs m	65,516	78,786	119,828	52.1%	82.9%
Expenses	Rs m	52,862	72,021	106,279	47.6%	101.0%
Gross profit	Rs m	52,758	-1,044	144,243		173.4%
Depreciation	Rs m	21,415	30,059	47,734	58.8%	122.9%
Interest	Rs m	11,910	21,662	28,248	30.4%	137.2%
Profit before tax	Rs m	19,853	-50,614	70,441		254.8%
Tax	Rs m	7,008	-453	19,997		185.3%
Profit after tax	Rs m	12,845	-50,161	50,444		292.7%
Gross profit margin	%	81.0	-1.4	122.6
Effective tax rate	%	35.3	0.9	28.4
Net profit margin	%	19.6	-63.7	42.1

Year-on-Year Performance:

• The company's operating income during the quarter grew 80.7% on a year-on-year (YoY) basis. The expenses were up by 101.0% YoY during the same period.
• The company's operating profit increased by 173.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 122.6% in 3QFY19 as against 81.0% in 3QFY18.
• Depreciation charges increased by 122.9% and finance costs increased by 137.2% YoY, respectively.
• Other income increased by 419.0% YoY during the quarter.
• Net profit for the quarter increased by 292.7% YoY. Net profit margins during the quarter increased from 19.6% in 3QFY18 to 42.1% in 3QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 53.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 47.6% QoQ during the same period.
• The company's operating profit increased by 13916.4% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 122.6% in 3QFY19 as against 1.4% in 2QFY18.
• Net profit for the quarter increased by 200.6% QoQ, while net profit margins increased from -63.7% in 2QFY18 to 42.1% in 3QFY19.

To see how VODAFONE IDEA has performed over the last eight quarters, please visit here.

VODAFONE IDEA Share Price Performance

Over the last one year, VODAFONE IDEA share price has moved up from Rs 84.7 to Rs 29.8, registering a Loss of Rs 55.0 or around 64.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,649.5 (down 0.2%). Over the last one year it has moved up from 6,552.7 to 7,649.5, a gain of 1,097 points (up 16.7%).

Overall, the S&P BSE SENSEX is up 5.7% over the year.

Current Valuations

At the current price of Rs 29.8, the price to earnings (P/E) ratio of VODAFONE IDEA stands at 8.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.4 times.