Vodafone Idea Q3 Loss Narrows as ARPU Rises to Rs 173

Vodafone Idea Narrows Q3 Loss to Rs 6,609.3 Crore as ARPU Increases to Rs 173

Vodafone Idea, a telecom operator, has reported a reduction in its losses for the December quarter, amounting to Rs 6,609.3 crore. The company's revenue from operations reached Rs 11,117.3 crore during this period, marking an increase of over 4% compared to the same quarter last year.

Key Financial Highlights

• Consolidated Loss: Reduced to Rs 6,609.3 crore from Rs 6,985.9 crore in the previous year.
• Revenue from Operations: Increased to Rs 11,117.3 crore, up over 4% YoY.
• Customer ARPU: Increased to Rs 173 for Q3, up from Rs 166 in the July-September period (4.7% sequential growth).

Strategic Focus

Vodafone Idea's CEO, Akshaya Moondra, highlighted the company's strategic priorities:

• Investments: Focusing on investments to improve service quality and network capabilities.
• Capex Deployment: Planning to speed up capex deployment in upcoming quarters.
• 5G Rollout: Phased rollout of 5G services in key regions.

Financial Performance Improvement

• Cash EBITDA: Reported the highest quarterly cash EBITDA since the merger at Rs 24.5 billion (Rs 2,450 crore), showing a year-on-year growth of about 15%.
• Equity Infusion: Recently received an equity infusion of Rs 19.1 billion (Rs 1,910 crore) from one of its promoters. Secured approximately Rs 260 billion (Rs 26,000 crore) in fresh equity capital over the past ten months.
• Debt Financing: Actively engaging with lenders to secure debt financing.

Network Expansion Plans

Vodafone Idea plans a significant network expansion investment of Rs 500-550 billion over three years. The government's decision to waive bank guarantees is seen as a positive sign, highlighting its support for the telecom sector.

Overall Outlook

Vodafone Idea's strategic focus on investment and expansion aims to strengthen its market position, enhance service quality, and improve financial stability through targeted investments and government collaboration.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Mahindra Group Invests Rs 40,000 Cr in Karnataka

Mahindra Group Announces Nearly Rs 40,000 Crore Investment in Karnataka's Renewable Energy Sector

Anand Mahindra, Chairman of the Mahindra Group, has unveiled plans to invest nearly Rs 40,000 crore in Karnataka over the next few years. Speaking at the Invest Karnataka-2025 summit, he emphasized the group's dedication to long-term ventures in renewable energy, aerospace, hospitality, and real estate within the state.

Investment Breakdown

Here's a look at the planned investments:

• Mahindra Susten: Plans to invest Rs 35,000 crore in developing over five gigawatts of solar and hybrid projects within five years, creating 6,000-8,000 new jobs.
• Mahindra Holidays: Considering expanding resort operations in Karnataka, particularly in Gokarna and Hampi, with a potential investment of Rs 1,000 crore.
• Mahindra Lifespaces: Currently working on real estate projects worth over Rs 5,000 crore in Bengaluru and planning to invest an additional Rs 6,000 crore.
• Mahindra Defence Services and Mahindra Aerospace: Exploring strategic expansion opportunities with investments of several hundred crores.

Strategic Expansion

Karnataka plays a crucial role in the Mahindra Group's strategic initiatives:

• Renewable Energy Hub: The group's renewable energy portfolio heavily relies on Karnataka for solar and hybrid projects.
• Real Estate Growth: Mahindra Lifespaces sees significant growth potential in the region's real estate market.
• Electric Vehicle Leadership: Karnataka is a key hub for Mahindra's ambitions in the electric three-wheeler market.

Personal Connection and Life Lessons

Anand Mahindra shared his personal connection to Karnataka, recalling his childhood memories from Kodagu, where his family cultivated a coffee plantation. He highlighted three key lessons learned from coffee cultivation:

• Planting deeply rooted bushes for success.
• Providing support for growth.
• Having patience for returns.

These experiences, he noted, shaped his personal and professional life.

Government Support

The Mahindra Group's relationship with Karnataka has thrived due to supportive government policies such as the New Industrial Policy and Global Capability Centres Policy, encouraging business growth and providing confidence for future investments.

Economic Impact

The Mahindra Group currently employs over 25,000 people directly in Karnataka across various sectors, demonstrating its strong involvement with the state and its economy.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Devyani International Q3: Net Loss Despite Revenue Growth

Devyani International Q3 Results: Company Reverses Profits, Reports Rs 7.6 Crore Net Loss

Devyani International, a prominent Yum Brands franchisee in India, has reported a net loss of Rs 7.6 crore for the third quarter ended December 2024. This marks a reversal from the net profit of Rs 5.1 crore reported in the same period last year.

Stock Market Reaction

Following the release of the results, Devyani International's stock experienced a decline, falling 5% to a day's low of Rs 169.10 on the BSE.

Key Financial Figures

• Net Loss: Rs 7.6 crore (compared to a profit of Rs 5.1 crore in the year-ago period).
• Consolidated Revenue: Rs 1,290 crore, a growth of 53.5% YoY.
• Nine-Month Revenue: Rs 3,740 crore, a rise of 49% YoY.
• Consolidated Reported EBITDA: Rs 220 crore, with margins at 16.9%, an improvement of 60 basis points against the previous quarter.

Store Expansion and Growth Strategy

Devyani International emphasized its store expansion strategy as a key driver of growth. In Q3, the company added 111 net new stores, bringing the total store count to 2,032 as of December 31, 2024. The company has also expanded its KFC operations in Thailand, reaching a total of 305 stores as of the same date.

Management Commentary

Ravi Jaipuria, Non-Executive Chairman of Devyani International, commented, "Reflecting on Q3, our store expansion strategy has been a key driver of the company’s growth. We remain committed to this approach, ensuring a balance between expansion and store-level performance...I am glad to share that our brands continue to demonstrate consistency and excellence.”

Future Outlook

Devyani International reported positive same-store sales growth (SSSG) momentum across core brands and geographies. The company is on track to commence the operation of new Brands by Q1 of FY 26.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Berger Paints Q3 Results: Profit Down 1.4% Amid Demand Issues

Berger Paints Q3 Results: Profit Declines 1.4% to Rs 295 Crore, Revenue Up 3.2%

Paint manufacturer Berger Paints reported a 1.4% year-on-year decline in net profit for the quarter ended December, reaching Rs 295.97 crores. The company cited tough demand conditions, the impact of prior price reductions, currency depreciation, and inventory impacts from monomer price increases as contributing factors.

Key Financial Highlights for Q3

• Net Profit: Declined by 1.4% YoY to Rs 295.97 crores.
• Revenue from Operations: Increased by 3.2% to Rs 2,975.06 crores.
• EBITDA (excluding other income): Down 1.7% at Rs 471.73 crores.

Factors Affecting Performance

The company attributed the decline in net profit to several factors:

• Tough Market Conditions: Muted urban demand and a slowdown in key markets.
• Price Reductions: Impact of price drops implemented in prior quarters.
• Currency Depreciation: Depreciation of the currency affected profitability.
• Inventory Impact: Increase in monomer prices impacted inventory value.

Management Commentary

Abhijit Roy, Managing Director & CEO of Berger Paints India, commented on the results:

• Despite tough market conditions, the company delivered high single-digit volume growth.
• There was a sequential uptick in both volume and value growth.
• The visible uptick in the industrial segments is a good indicator of a demand improvement cycle.
• The company reported an improvement in its net cash position and continued market share improvement.

Nine-Month Performance

For the nine months ended December:

• Revenue from Operations: Increased by 1.9% to Rs 8,840.68 crores.
• EBITDA (excluding other income): Declined by 5.4% to Rs 1,428.32 crores.
• Net Profit: Declined by 2.9% to Rs. 919.90 crores.

Outlook

Roy expressed optimism about the demand scenario for the months ahead, citing favorable budget announcements, government spending on infrastructure & development, and expectations of a good monsoon season. The anticipated waning of the price decrease impact also bodes well for future performance.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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