Indus Towers’ doubtful receivables from Vodafone Idea slips in Q2

23 Oct 2024 , 02:51 PM

According to Indus Towers, telecom services provider Vodafone Idea Ltd. has been paying the monthly billing amount from January 2023.

Vodafone Idea has paid ₹2,328 Crore of unpaid dues, including ₹1,028 Crore for the September 2024 quarter.

Indus Towers continues to record revenue for services delivered to Vodafone Idea. As of September, doubtful receivables relating to the company stood at ₹3,548 Crore, down from ₹5,386 Crore in March 2024.

Vodafone Idea will need to give bank guarantees between October 2025 and September 2026.

The debt-ridden telecom may request a waiver from the Department of Telecommunications (DoT) for the payment of these guarantees.

Vodafone Idea has been in discussions with the DoT about waiving the bank guarantee, which the business is expected to give a year before the due date for payment of spectrum acquired before 2022.

The moratorium on spectrum auction dues for Vodafone Idea expires in September 2025, and bank guarantees must be provided at least a year in advance to secure the dues.

The telecom operator planned to submit bank guarantees in tranches for various auctions beginning September 20.

Vodafone Idea would need to provide bank guarantees worth over ₹24,700 Crore to the government in the coming months.

The corporation has asked the government for relief on ₹70,000 Crore adjusted gross revenue (AGR) dues after the Supreme Court rejected its curative case for correcting the calculation of statutory dues and waiving penalties and interest.

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