- Birla, chairman of the company said- will not have to choose bankrupt if it does not help
- The company’s stock declined 9% after Kumar Mangalam Birla’s statement.
- Vodafone-Idea had a record loss of Rs 50921 crore in the September quarter
Vodafone-Idea chairman Kumar Mangalam Birla says that if the government is not relieved, the company will have to be shut down. Birla said this at a summit on Friday in response to a question about the company’s future.
Mangalam Birla says if the government did not provide relief, the company will shut down soon
He showed that he would not invest in Vodafone-Idea any more. Birla said that if there is no relief, one has to opt for bankruptcy.
Vodafone-Idea increased tariff, but not enough
After Reliance Jio, other companies are incurring losses in the tariff war. The difficulties of the telecom companies further increased after the Supreme Court’s decision in the Adjusted Gross Revenue (AGR) dispute. Vodafone-Idea lost Rs 50,921 crore in the July-September quarter. This is the biggest loss for an Indian company in a quarter. Vodafone-Idea also increased the tariff in the past, but the benefit they expect it to be will not be sufficient according to the requirements.
Vodafone-Idea shares fall sharply for the second consecutive day
After Birla’s statement, the stock fell 8.89% to Rs 6.66 on BSE on Friday. However, it later recovered with a 4% recovery and a 5% loss. There was also a 5% drop on Thursday due to the downgrade of brickwork ratings.
Corporate tax is reduced
Recently, the government cut corporate tax. The amendment bill has also approved by the House. For companies that do not claim exemption, they reduced corporate tax from 30 percent to 22 percent. They have reduced the tax rate for new companies in the infrastructure sector from 25 percent to 15 percent. Apart from this, the government has also taken steps to facilitate business and increase foreign direct investment (FDI).