Its revenue from operations rose 6.6% year-on-year (YoY) to ₹10,239 crore in Q4FY22, while it was up 5% from the previous quarter, supported by tariff hikes effective November 25, 2021.
Vodafone Idea's realisation per user or ARPU improved sharply on a sequential basis aided by November tariff hikes. The realisation per user measured in terms of ARPU, a key metric for telcos, rose to ₹124 from ₹115 in the prior three-month period.
“We are pleased to announce third consecutive quarter of revenue growth driven by tariff interventions taken in November 2021. While the overall subscriber base has been impacted primarily on account of the tariff increase, the 4G subscriber base continued to grow on the back of superior data and voice experience offered by Vi GIGAnet," said VI's MD and CEO Ravinder Takkar.
This translated into a sequential increase of 7.5% in Average Revenue Per User (ARPU), although the company's subscriber base declined to 243.8 million against 247.2 million in Q3 FY22, primarily due to the tariff hike.
“While government relief (option of conversion of dues into equity) ensures the survival, the company needs to raise capital as early as possible to stay competitive. Subscriber churn also needs to be controlled, while network spends lags vis-à-vis peers. We seek management commentary on fund raising," said brokerage ICICI Securities in a note.
