Vodafone Idea shares on Monday fell to its all-time low level over sudden revenue deterioration reported in its quarterly results, reflecting the stress in the Indian telecom sector.
Sell-off in the Vodafone Idea shares came on the back ofinvestor concerns on the stability of the company, which saw the scrips fall asmuch as 29 per cent on the BSE before it closed 27.03 per cent lower at Rs 6.75apiece.
JM Financial in its investor note on Vodafone Idea said thatthe company’s key performance indicators (KPIs) show “eroding consumermind-share and perception, driven primarily by its 4G coverage/capacity deficitrelative to Bharti and Jio”.
Evaluating the results the brokerage firm said that VodafoneIdea’s reported a “sudden revenue deterioration”, which could havepanicked the investors on Monday.
Vodafone Idea had on Friday reported a loss of Rs 4,873.9crore in the June quarter against the Rs 4,881.9 crore loss in the previousquarter. Its revenue fell to Rs 11,269.9 crore as against Rs 11,775 crore inthe March quarter.The brokerage firm highlighted the sharp declinein the Vodafone Idea’s subscriber base, which dropped by 14 million(quarter-on-quarter).