[wealthdesk shortname="Vodafone Idea" isinid="INE669E01016" bseid="532822" nseid="IDEA" sector="Telecommunications - Service" exchange="nse"]

Vodafone Idea (Vi) shares were under pressure on Thursday, a day after the private sector telecom operator reported a weak quarterly performance — reeling under a huge debt pile and a shrinking margin on account of intense competition from peers. Vodafone Idea's financial results reflect the fierce competition in the country's telecom industry.

The Vodafone Idea stock fell as much as 6.1 percent to Rs 8.6 apiece on BSE, before settling down 3.8 percent for the day at Rs 8.8 apiece.

The company's net loss for the April-June period increased 11.2 percent sequentially to Rs 7,296.7 crore. The widening of net loss came about even as Vodafone Idea's revenue increased 1.7 percent to Rs 10,410 crore compared with the previous three months.

ALSO READ: <a href="http://cnbctv18.com/telecom/jio-5g-service-rollout-in-all-22-circles-in-the-shortest-period-of-time-14327072.htm">Jio to roll out 5G services in 22 circles in shortest period of time</a>

That was in stark contrast to Reliance Industries' digital arm, <a href="http://cnbctv18.com/business/companies/reliance-industries-rjio-reliance-jio-reports-higher-revenue-at-rs-21873-crore-14219852.htm">Reliance Jio Infocomm</a>, which reported a 3.9 percent jump in net profit for the April-June period compared with the previous three months.

<img class="aligncenter size-full wp-image-14367282" src="https://images.cnbctv18.com/wp-content/uploads/2022/08/Aug-4-ARPU-.jpeg" alt="" width="792" height="329" />

Vodafone Idea and Reliance Jio rival Bharti Airtel is yet to report its quarterly numbers for the April-June period.

Vodafone Idea's average revenue per user (ARPU) — a key measure of profitability for telecom companies — came in at Rs 128 for the quarter ended June, as against Rs 104 for the corresponding period a year ago.

Vi's margin — a key metric of profitability determined by the difference between revenue and expenses — fell by 380 basis points to 41.6 percent in the three-month period.

<img class="aligncenter size-full wp-image-14367362" src="https://images.cnbctv18.com/wp-content/uploads/2022/08/Aug-4-Vodafone-vs-Jio-Subscriber-Base.jpeg" alt="" width="833" height="323" />

The company continued to lose subscribers to rivals in the three-month period. Its subscriber base shrank by 3.4 million and 15 million on quarter-on-quarter and year-on-year bases.

Its EBITDA — a measure of operating profitability, which means earnings before taking into account the impact of components such as interest and taxes — fell 6.9 percent sequentially.

ALSO READ: <a href="http://cnbctv18.com/telecom/5g-spectrum-auction-may-boost-telcos-revenue-sooner-than-expected-with-jio-holding-an-edge-14265522.htm">5G spectrum auction may boost telecom firms revenue sooner than expected earlier</a>

Its gross debt stood at Rs 1.99 lakh crore as of June 30.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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Vodafone Idea vs Reliance Jio: A look at key data points

By CNBCTV18.com Aug 4, 2022 4:27:42 PM IST (Updated)

Vodafone Idea share price: The Vi stock faced selling pressure on Thursday after the telecom operator reported a weak set of earnings as it continued to lose market share.

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