Case Study on Vodafone Idea

Company Overview

Vodafone Idea, established in 2018, is a leading telecom provider in India with 21.98 crore subscribers.

White Frame Corner
White Frame Corner

 Business Model Overview

Offers 2G, 3G, 4G 5G services, postpaid/prepaid plans, value-added services, and cloud storage.

White Frame Corner
White Frame Corner

Financial Highlights

Operating revenue increased, but profit after tax has been negative for the last three years.

White Frame Corner
White Frame Corner

Key Financials

Total assets as of March 2023: INR 207,242.70 crore, long-term liability: INR 221,579.10 crore.

White Frame Corner
White Frame Corner

Cash Flow Overview

Net cash flow from operations as of March 2023: INR 18,868.70 crore.

White Frame Corner
White Frame Corner

Key Performance Indicators

Operating Profit Margin: -15%, Net Profit Margin: -69%, Debt to Equity Ratio: -0.18.

White Frame Corner
White Frame Corner

Follow-On Public Offer (FPO)

Raised INR 18,000 crore in April 2024 to tackle debt and expand 5G and 4G networks.

White Frame Corner
White Frame Corner

SWOT Analysis - Strength

Large subscriber base, nationwide service. 

White Frame Corner
White Frame Corner

SWOT Analysis - Weakness

 High debt, competition from Jio and Airtel.

White Frame Corner
White Frame Corner

SWOT Analysis - Opportunity

5G rollout, rural market expansion.

White Frame Corner
White Frame Corner

SWOT Analysis - Threats

 Debt burden, intense competition, regulatory changes.

White Frame Corner
White Frame Corner

Conclusion

Vodafone Idea aims to enhance network performance and customer service despite financial challenges.

White Frame Corner
White Frame Corner