Shares of Vodafone Idea
continued their decline, falling 15 per cent to Rs 2.91 on the BSE on Tuesday, after Care Ratings (CARE) downgraded its ratings on the long-term bank facilities and non-convertible debentures.
The stock of the telecom services firm was trading lower for the seventh straight day, plunging 44 per cent during the period. It was trading close to its all-time low price of Rs 2.61 touched on November 15, 2019.
“The downgrade inter-alia is on account of significant erosion in the overall risk profile of the company while taking into cognizance of the financial impact of no relief being granted on modification plea on 14th February 2020 of telecom companies (telcos) seeking new schedule of Adjusted Gross Revenues (AGR) dues by the Supreme Court and significant losses to the tune of Rs 6,453 crore in Q3FY20,” the company said in an exchange filing.
“Provisions for AGR dues and these losses have resulted in the significant deterioration in the tangible net worth and overall debt protection metrics leading to sharp erosion in the overall financial risk profile of Vodafone Idea,” CARE Rating said.
Ability of Vodafone Idea
to maintain its operational performance amidst prevalent competition in the industry and fructification of envisaged deleveraging measures remains key rating sensitivities. Further, continuity of support extended by Vodafone Group as well as Aditya Birla Group to Vodafone Idea
will continue to be critical as well as key monitorable, it added.CLICK HERE TO READ FULL REPORT
At 09:44 am, Vodafone Idea erased its early morning losses partislly and was trading 9 per cent lower at Rs 3.12 on the BSE. A combined 36.58 million shares have changed hands on the counter on the NSE and BSE so far.