Indian mobile carrier Vodafone Idea on Thursday reported the biggest quarterly loss in India's corporate history after making provisions for outstanding government dues.

Vodafone Idea, made up of the local unit of Vodafone Group Plc and billionaire Kumar Mangalam Birla's Idea Cellular, reported a consolidated net loss of 509 billion rupees ($7.13 billion) in the second quarter to September.

The company took a charge of 256.78 billion rupees for the quarter after India's Supreme Court last month upheld a demand by the telecoms department that wireless carriers pay 920 billion rupees in overdue levies and interest.

Vodafone Idea and rival Bharti Airtel, two of India's three main mobile carriers, will have to pay a bulk of this state demand.

Bharti Airtel on Thursday reported a consolidated net loss of 230.45 billion rupees ($3.23 billion) in three months to September.

Bharti said it made a provision of 284.50 billion rupees, more than 92% of the overall charge for exceptional items, after the Supreme Court ruling.

Telecom providers in India pay the Department of Telecommunications (DoT) nearly 3-5% of their adjusted gross revenue (AGR) in usage charges for spectrum or airwaves and 8% of AGR as licence fees.

The DoT and the mobile carriers have been at odds over the definition of AGR. The companies argue that AGR should comprise just revenue accrued from core services, while the DoT says AGR should include all revenue.

The Supreme Court last month upheld the DoT's view on AGR.

Vodafone Idea said it was in active discussions with the government seeking financial relief and also in the process of filing a review petition with the Supreme Court.

"It is to be noted that our ability to continue as a going concern is dependent on obtaining the reliefs from the government... and positive outcome of the proposed legal remedy," Vodafone Idea said in a statement.

The company's gross debt at end-Sept. stood at 1.17 trillion rupees. Analysts have previously warned that Vodafone Idea will be the worst hit after the Supreme Court ruling given its already stretched balance sheet.

"Vodafone results are a reflection of the company’s inability to compete effectively in a three-player market," said Deepa Dasani of HDFC Securities.

"Apart from its impact on its equity value, this result will surely result in wider financial repercussions because it will hit the lenders and debt investors in the company, including mutual funds."

Analysts on average expected Vodafone Idea to report a consolidated net loss of 44.22 billion rupees for the quarter, according to Refinitiv data, although those figures did not include the charge.

The wireless carrier had posted a net loss of 49.74 billion rupees a year ago.

Vodafone Idea's consolidated revenue from operations for the quarter rose 41.4% year-on-year to 108.44 billion rupees.

On Thursday, Vodafone Idea said it plans to sell its 11.15% stake in mobile mast operator Indus Towers once its merger with Bharti Infratel receives regulatory clearances.

Bharti Airtel's MD and CEO, India &amp; South Asia, Gopal Vittal said: "We continue to engage with the government and are evaluating various options available to us."

"We are hopeful that the government will take a considerate view in this matter given the fragile state of the industry," Gobal said.

Analysts on average expected Bharti Airtel to report a loss of 11.16 billion rupees for the three months to the end of September, according to Refinitiv data.

Bharti, which runs operations in South Asia and Africa, said its Indian revenue rose 3% year-on-year to 153.61 billion rupees.

Earlier on Thursday, Singapore-based Singtel posted a second-quarter loss of S$668 million ($491.29 million) hurt by a one-time charge recorded by Bharti.

Singtel is the biggest shareholder in Bharti Airtel, with an effective stake of about 35%.

Indian mobile carrier Vodafone Idea on Thursday reported the biggest quarterly loss in India's corporate history after making provisions for outstanding government dues.

Indian mobile carrier Vodafone Idea on Thursday reported the biggest quarterly loss in India's corporate history after making provisions for outstanding government dues. Vodafone Idea, made up of the local unit of Vodafone Group Plc and billionaire Kumar Mangalam Birla's Idea Cellular, reported a consolidated net loss of 509 billion rupees ($7.13 billion) in the second quarter to September. The company took a charge of 256.78 billion rupees for the quarter after India's Supreme Court last month upheld a demand by the telecoms department that wireless carriers pay 920 billion rupees in overdue levies and interest. Vodafone Idea and rival Bharti Airtel, two of India's three main mobile carriers, will have to pay a bulk of this state demand. Bharti Airtel on Thursday reported a consolidated net loss of 230.45 billion rupees ($3.23 billion) in three months to September. Bharti said it made a provision of 284.50 billion rupees, more than 92% of the overall charge for exceptional items, after the Supreme Court ruling. Telecom providers in India pay the Department of Telecommunications (DoT) nearly 3-5% of their adjusted gross revenue (AGR) in usage charges for spectrum or airwaves and 8% of AGR as licence fees. The DoT and the mobile carriers have been at odds over the definition of AGR. The companies argue that AGR should comprise just revenue accrued from core services, while the DoT says AGR should include all revenue. The Supreme Court last month upheld the DoT's view on AGR. Vodafone Idea said it was in active discussions with the government seeking financial relief and also in the process of filing a review petition with the Supreme Court. "It is to be noted that our ability to continue as a going concern is dependent on obtaining the reliefs from the government... and positive outcome of the proposed legal remedy," Vodafone Idea said in a statement. The company's gross debt at end-Sept. stood at 1.17 trillion rupees. Analysts have previously warned that Vodafone Idea will be the worst hit after the Supreme Court ruling given its already stretched balance sheet. "Vodafone results are a reflection of the company’s inability to compete effectively in a three-player market," said Deepa Dasani of HDFC Securities. "Apart from its impact on its equity value, this result will surely result in wider financial repercussions because it will hit the lenders and debt investors in the company, including mutual funds." Analysts on average expected Vodafone Idea to report a consolidated net loss of 44.22 billion rupees for the quarter, according to Refinitiv data, although those figures did not include the charge. The wireless carrier had posted a net loss of 49.74 billion rupees a year ago. Vodafone Idea's consolidated revenue from operations for the quarter rose 41.4% year-on-year to 108.44 billion rupees. On Thursday, Vodafone Idea said it plans to sell its 11.15% stake in mobile mast operator Indus Towers once its merger with Bharti Infratel receives regulatory clearances. Bharti Airtel's MD and CEO, India & South Asia, Gopal Vittal said: "We continue to engage with the government and are evaluating various options available to us." "We are hopeful that the government will take a considerate view in this matter given the fragile state of the industry," Gobal said. Analysts on average expected Bharti Airtel to report a loss of 11.16 billion rupees for the three months to the end of September, according to Refinitiv data. Bharti, which runs operations in South Asia and Africa, said its Indian revenue rose 3% year-on-year to 153.61 billion rupees. Earlier on Thursday, Singapore-based Singtel posted a second-quarter loss of S$668 million ($491.29 million) hurt by a one-time charge recorded by Bharti. Singtel is the biggest shareholder in Bharti Airtel, with an effective stake of about 35%.

Vodafone Idea makes $7 billion loss after provisions for government dues

Kumar Mangalam Birla, chairman of the Aditya Birla group, expressed his ignorance Friday about the allegations made a few days by Rahul Gandhi. Gandhi had alleged Birla&#39;s firm had paid bribes to Prime Minister Narendra Modi while he was Gujarat chief minister.

&quot;I don&#39;t even know about it and I do not wish to talk on that issue. The matter is subjudice,&quot; he told reporters after being asked repeatedly about the allegations.

Birla kept his responses to speaking about his new role as chairman of the Indian Insitute of Managment-Ahmedabad&#39;s board of governors while on a&nbsp;two-day visit to the institute on Friday.

Birla was at IIM-A Friday for the first time after being appointed chairman by the ministry of human resource development two months ago.

Birla said he would act as a bridge between the corporate world and the premier business school.

Reacting to Gandhi&#39;s allegations, union minister Ravi Shankar Prasad had said the charges were &quot;baseless, false, shameful and mala fide&quot; and an attempt to divert attention from the AgustaWestland probe in which the names of Congress leaders and the &quot;family&quot; -- he was referring to the Gandhi family -- were coming up.

This is not the first time such allegations have been made against the Prime Minister, although the charges date back to the time he was Gujarat chief minister.

Senior advocate Prashant Bhushan had levelled the same charges, based on the same documents, against Modi in the Supreme Court.

The court however has so far refused to entertain his PIL, which asks that a special investigation team probe the evidence.&nbsp;

(WION)

On Wednesday, Rahul Gandhi had alleged Birla officials gave bribes to Modi while he was Gujarat chief minister

Kumar Mangalam Birla, chairman of the Aditya Birla group, expressed his ignorance Friday about the allegations made a few days by Rahul Gandhi. Gandhi had alleged Birla's firm had paid bribes to Prime Minister Narendra Modi while he was Gujarat chief minister. "I don't even know about it and I do not wish to talk on that issue. The matter is subjudice," he told reporters after being asked repeatedly about the allegations. Birla kept his responses to speaking about his new role as chairman of the Indian Insitute of Managment-Ahmedabad's board of governors while on a two-day visit to the institute on Friday. Birla was at IIM-A Friday for the first time after being appointed chairman by the ministry of human resource development two months ago. Birla said he would act as a bridge between the corporate world and the premier business school. Reacting to Gandhi's allegations, union minister Ravi Shankar Prasad had said the charges were "baseless, false, shameful and mala fide" and an attempt to divert attention from the AgustaWestland probe in which the names of Congress leaders and the "family" -- he was referring to the Gandhi family -- were coming up. This is not the first time such allegations have been made against the Prime Minister, although the charges date back to the time he was Gujarat chief minister. Senior advocate Prashant Bhushan had levelled the same charges, based on the same documents, against Modi in the Supreme Court. The court however has so far refused to entertain his PIL, which asks that a special investigation team probe the evidence. (WION)

'I don't even know about it,' Birla says about alleged payments to Modi

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Vodafone Idea makes $7 billion loss after provisions for government dues

'I don't even know about it,' Birla says about alleged payments to Modi