Shares of Vodafone Idea Ltd on Monday fell by over 27 percent to hit an all-time low of Rs 6.55 apiece on NSE.
The stock's reaction comes after the release of the company's financial results for the first quarter of 2019-20. On Friday, after market hours, the telecom operator posted a net loss of Rs 4,873.9 crore for the June-ended quarter. The loss narrowed when compared to Rs 4,881.9 crore in March and Rs 5,004.6 crore in December.
Its revenue fell by 4.3 percent from Rs 11,775 crore in the last quarter to Rs 11,269.9 crore. Vodafone Idea said that the fall in tariffs was seen after the introduction of its minimum monthly recharge plans.
Further, on comparison with its competition, Reliance Jio's subscriber base numbers, according to its results released a week before, have overtaken that of Vodafone Idea. This means that the latter does not hold the title of the largest telecom operator in India any more.
After the merger of Vodafone India and Idea Cellular, the new entity Vodafone Idea, had emerged as the largest telecom player in the country with over 400 million customers. Companies in the sector have been struggling to grow their profits following the entry of Reliance Jio in 2016. Jio's cheap call and mobile data rates forced the others to lower their rates to match the offerings, curbing profits.