Vodafone's AGR EMI will drive it to financial crisis in absence of relief: CLSA

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A relief in the adjusted gross revenue (AGR) is crucial from Vodafone’s fundraising plans, said brokerage firm CLSA in a note on Thursday, July 15. In the note on the telecom AGR issue, it said that the delay in the adjusted gross revenue (AGR) case by the Supreme Court is unwarranted as the companies had petitioned the apex court in January 2021.

A relief in the adjusted gross revenue (AGR) is crucial from Vodafone’s fundraising plans, said brokerage firm CLSA in a note on Thursday, July 15. In the note on the telecom AGR issue, it said that the delay in the adjusted gross revenue (AGR) case by the Supreme Court is unwarranted as the companies had petitioned the apex court in January 2021.
The note from the CLSA also said that asking the telecom operators to make the AGR payments based on the DoT’s assessment is ironic because it was the DoT, which directed the telecom companies in the first place to do a self-assessment.
Furthermore, they are talking about if a potential relief comes to fruition, then the relief for the incumbent players could be to the tune of $4 to $5 billion and particularly for Vodafone Idea, they are saying the AGR relief is crucial because their fundraising plan hinges on it.
If they do not get this relief Vodafone Idea, then Vodafone Idea’s AGR EMI will be 60 percent of the company's FY22 calendar year cash EBITDA, which could perhaps according to CLSA drive the company into a financial crisis back to you.
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