Vodafone India on Tuesday joined its incumbent peers like Airtel and Idea to get hit on all key financial metrics during FY17, impacted by the free services launched by Reliance Jio. The company, which is in the process of being merged with Idea, reported a 10.2 per cent decline in its operating profit at Rs 11,784 crore and a marginal 0.6 per cent fall in revenues at Rs 43,095 crore during the year. It also witnessed a margin contraction of around 3 percentage points to 27.3 per cent during the fiscal.
Vodafone also said in its post-earnings call that it expects stability to return to the business in the current fiscal, since Jio has started charging from April.
The silver lining as noted by analysts is that their data volumes, which got dented in the December quarter, saw volumes rise once again in the March quarter. This shows that there’s appetite for data and with price stability returning, average realisation per user as well as realisation per MB would also stabilise, albeit slowly.