Vodafone India's Apr-Sep revenue up 13%, but losses continue

Vodafone India's Apr-Sep revenue up 13%, but losses continue
Helped by the improved cost efficiencies, Vodafone India managed to post the growth of 13 per cent in its revenues for six months ended September 2012 at Rs 17,580 crore even as net remained under pressure.

The company had posted the revenue of Rs 15,510 crore during the same period a year ago, said Vodafone India in a statement.

"We have been able to improve our operational profit margin to 28.4 per cent as a result of our increasing operating efficiency, based on scale and lower customer acquisition cost," Martin Pieters, managing director and chief executive officer, told reporters.

Pieters said revenue growth was however capped by the some regulatory measures in the country.

He also added that high operating costs deterred the profits. Operating costs rose on account of huge investments in rolling out services in new telecom zones and enhancing its coverage in the country. Depreciation costs and borrowing rates as high as 11-12 per cent made it difficult to earn a profit, Pieters said.

The company witnessed drop in minutes amid lack of new subscribers while data revenues managed to make up for the fall in voice revenues. Helped by the 3G services, Vodafone India reported 12.4 per cent rise in data revenues during the six months ended September 2012.

Read more about: vodafone
Story first published: Thursday, November 15, 2012, 9:32 [IST]
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