Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Past Dues Credit Negative for Airtel Despite Spectrum Payment Moratorium, Rate Hikes: Moody's

Bharti Airtel has posted a staggering Rs 23,045 crore net loss for the second quarter ended September 30, due to provisioning of Rs 28,450 crore after the Supreme Court's ruling on statutory dues.

PTI

Updated:December 2, 2019, 7:51 PM IST
facebookTwitter Pocket whatsapp
Past Dues Credit Negative for Airtel Despite Spectrum Payment Moratorium, Rate Hikes: Moody's
A rickshaw puller speaks on his mobile phone in front of advertisement billboards belonging to telecom companies in Kolkata, India, February 3, 2014. REUTERS/Rupak De Chowdhuri/File Photo

New Delhi: Adjusted gross revenue dues on Bharti Airtel are credit negative for the telecom operator despite a two-year moratorium given by the government on spectrum payment and the firm's plan to raise mobile call and data charges, credit rating agency Moody's Investors Service said on Monday.

Bharti Airtel has posted a staggering Rs 23,045 crore net loss for the second quarter ended September 30, due to provisioning of Rs 28,450 crore in the aftermath of the Supreme Court's ruling on statutory dues.

According to data from the government, the liabilities in the case of Bharti Airtel add up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is the spectrum usage charge due (excluding the dues of Telenor and Tata Teleservices).

"Potential payment of past-due fees weighs on credit profile, despite spectrum moratorium and price hikes," Moody's said. Bharti Airtel and Vodafone Idea announced new plans that will cost their subscribers up to 50 per cent more from Tuesday.

Bharti Airtel on November 26 made its latest filing with the Supreme Court seeking modification of the 90-day adjusted gross revenue (AGR) order for past-due licence fees and spectrum usage charges.

"If, as we expect, the amount Bharti is ultimately required to pay is large and needs debt funding, the company's debt leverage will increase, a credit negative," Moody's said.

The credit rating agency said that in case Bharti Airtel is required to make a payment of Rs 34,260 crore immediately and in full, the debt level of the company will rise 25 per cent if the company raises entire money to make payment through debt instruments.

"If Bharti and Vodafone are required to make their payments immediately and in full, it will likely have fundamental implications for the financial health and competitive dynamics of the Indian telecommunications industry," Moody's said.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
Yes Bank 57.15 -7.97
SBI 324.15 -3.58
ICICI Bank 525.50 -0.49
Indiabulls Hsg 275.45 -3.38
Zee Entertain 286.25 -4.60
Company Price Change %Gain
Yes Bank 57.20 -7.89
Power Grid Corp 186.65 -0.27
Indiabulls Hsg 275.20 -3.40
SBI 324.20 -3.58
Bandhan Bank 555.80 -3.67
Top Gainers
Company Price Change %Gain
Bharti Infratel 258.55 5.08
Dr Reddys Labs 2,939.70 2.37
Kotak Mahindra 1,672.30 1.39
Asian Paints 1,736.70 1.22
HDFC Bank 1,254.65 0.73
Company Price Change %Gain
Kotak Mahindra 1,671.80 1.32
Asian Paints 1,737.25 1.31
HDFC Bank 1,255.95 0.84
HCL Tech 564.15 0.61
Infosys 717.70 0.43
Top Losers
Company Price Change %Gain
Yes Bank 57.15 -7.97
Zee Entertain 286.25 -4.60
SBI 324.15 -3.58
GAIL 117.95 -2.68
Tata Motors 162.25 -2.32
Company Price Change %Gain
Yes Bank 57.20 -7.89
SBI 324.20 -3.58
M&M 512.60 -2.29
Tata Motors 162.30 -2.29
HDFC 2,277.10 -2.08

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results
Listen to the latest songs, only on JioSaavn.com