Goal: ₹8.5
CMP: ₹8.21
Vodafone Thought reported broadly in-line efficiency for Q3FY25. The corporate reported income of ₹11,120 crore (up 1.7 per cent q-o-q), pushed by 4.5 per cent q-o-q improve in ARPU to ₹163; offset by a 5.2 million decline q-o-q within the subscriber base to 199.8 million. Postpaid subscribers grew by 0.7 million q-o-q to 25.2mn (highest postpaid addition in final 4 quarters).
Common information utilization by 4G prospects was 15.2 GB/month vs 15.4 GB/month in Q2FY25. 4G/5G subscriber base elevated by 0.1 million to 126 million (vs decline of 0.8 millionn in Q2FY25). It added 20,651 4G websites in the course of the quarter, bringing the whole to 460.2k vs 439.6k in Q2FY25 whereas the 4G protection reached 107 crore vs 105 crore in Q2FY25. EBITDA margin improved by 80bps QoQ to 42.4 per cent, led by constructive working leverage.
Capex was ₹3,210 crore vs ₹1,260 crore in Q2FY25. The community rollout will speed up additional in Q4FY25 with FY25 anticipated capex of about ₹10,000 crore. Debt from the banks stood at ₹2,330 crore vs ₹3,250 crore in Q2FY25 whereas internet debt remained ₹2 lakh crore. The corporate continues to broaden its presence, with VLR subscribers rising throughout 11 circles in Dec’24/Jan’25.
We roll over to Mar’27E for valuation and preserve Cut back with a revised goal worth of ₹8.5 utilizing EV/EBITDA of 10.5x on Mar’27 estimates.
