India's Vodafone Idea posts surprise fourth-quarter profit after Birla Group investment

May 16 (Reuters) - Indian telecoms ​operator Vodafone Idea reported an unexpected fourth-quarter net profit on Saturday ​after ‌receiving a 430 crore rupees ($500 million) investment from Aditya Birla ⁠Group.

The company posted consolidated profit ⁠after tax of 519.76 billion ​rupees ($5.42 billion) in the three months to March 31. Analysts had expected a loss.

Earlier this year, the ​Indian ‌government capped Vodafone Idea's adjusted gross revenue dues at $13.79 million annually for the next six years, easing near-term cash flow pressure for the firm.

Vodafone Idea has ​invested heavily in its 4G and 5G networks in ‌recent years to improve service quality and curb a steady decline in its ‌subscriber base.

The company's average revenue per user (ARPU), a key industry metric, rose to 190 rupees from 175 ​rupees a year earlier.

India's third-largest telecom provider, 49% owned by the government, ‌was formed in 2018 by a merger between the Indian arm of Britain's Vodafone Group and Aditya ⁠Birla Group’s Idea ⁠Cellular.

The company has been struggling ‌with debt and keeping up with the network expansion of larger ​rivals.

Overall revenue ​for the quarter totalled 113.32 ‌billion rupees, missing analysts' average estimate of 116.50 billion rupees.

Vodafone