Mumbai (Maharashtra) [India], Nov 15 (ANI): Shares of Bharti Airtel and Vodafone Idea rebounded in Friday's morning trading, a day after the two telecom majors posted record losses in the second quarter of the current financial year (Q2 FY20).
Airtel and Vodafone together reported a whopping Rs 74,000 crore loss in Q2 FY20 after making provisions for their liabilities arising from the recent Supreme Court order.
At 11 am, Bharti Airtel rose by 6.6 per cent to Rs 386.80 per share while Vodafone Idea was up by 6.8 per cent at Rs 3.15 per share.
On Thursday, Airtel posted a substantial loss of Rs 23,045 crore in Q2 FY20. The numbers were dented by exceptional loss for license fee and spectrum usage charge especially after the unfavourable verdict from the Supreme Court on adjusted gross revenue (AGR) dues.
The company said its consolidated revenues for the quarter ended September at Rs 21,131 crore grew by 6.9 per cent year-on-year on an underlying basis.
"On the AGR verdict of the Supreme Court, we continue to engage with the government and are evaluating various options available to us," said Gopal Vittal, Managing Director and CEO for India and South Asia region. "We are hopeful that the government will take a considerate view in this matter given the fragile state of the industry."On the other hand, Vodafone posted a net loss of Rs 50,922 crore for the second quarter ended September, the highest ever net loss reported by a company in India.
The telecom major's performance took a hit on account of an exceptional charge of Rs 25,680 crore it took during the quarter on account of the recent Supreme Court ruling on AGR. Vodafone Idea has made a provision for potential payments that it will have to make to the Department of Telecommunications (DoT).
Reports said a committee set up by the government has sought recommendations from DoT on setting a minimum charge for all tariffs for telecom players and also assessing the impact it will have on telecom operators. (ANI)