Vodafone pre-tax profit plunges 39% in H1; industry suffers massive Rs 4087 crore loss in Q2
Vodafone India today reported a steep 39.2% plunge in pre-tax profit at Rs 4,075 crore for the six months to September, joining its peers who have cumulatively lost Rs 4,087 crore in the second quarter alone, exposing the deep scars in the once-sunshine segment.
The second largest telco squarely blamed the poor set of numbers — it also reported a 15.8% fall in revenue at Rs 19,002 crore — to the “continuing price war driven by Jio and other incumbents, seasonality, higher GST rate and the continuous capital investments”. The deep-pocketed Jio has been offering data almost free for a year now, while it charges nothing for voice, forcing the incumbents to make matching offers.
The next quarter will be worse for the old players as in a blow to them, regulator Trai had from October 1 steeply reduced the ICU charges from 14 to just 6 paise. The impact of this decision will come into the books from the third quarter. And the deep scars that the Jio-led competition has left in its wake was clear when yesterday Idea, which is on course to merge with Vodafone, reported a massive Rs 1,107 crore net loss in September quarter, as its …read more