Vodafone Idea Appointed Murthy GVAS As Interim CFO.

Vodafone Idea Appointed Murthy GVAS As Interim CFO.

HIGHLIGHTS

• Murthy GVAS was named as Vodafone Idea’s interim Chief Financial Officer on February 15, 2023 one of the country’s top telecom providers (CFO).
• Murthy GVAS has been appointed to oversee the organization’s financial operations until a new CFO is chosen following the resignation of the previous CFO.
• The business has been making efforts to strengthen its financial situation, including cost-cutting and capital raising via equity and debt issuances.

Through an exchange filing, Vodafone Idea Ltd. announced that Murthy GVAS has been named the company’s interim chief financial officer, effective as of today, February 15. The role of Mr Murthy GVAS as Interim Chief Financial Officer and Key Management People of the Company, beginning February 15, 2023, was fully authorized by the board of directors, the firm stated in a filing with the exchange.

Mr Murthy GVAS is officially named Executive Vice President – Financial Controller and Taxes Head. During the past few years, he has held the positions of executive vice president, controller, and chief tax officer at the firm. He is also in charge of the Shared Services division under the finance division.

Murthy GVAS delivers extensive business knowledge together with competence in financial operations, consolidation, compliance, taxation, system integration, mergers, and acquisitions. He is knowledgeable about the main business drivers, difficulties, and tactics.

Murthy GVAS has over 25 years of expertise in the financial industry and has held several senior positions. His most recent role was as CFO of Tata Communications Transformation Services Limited, where he was in charge of the organization’s governance, investor relations, and financial management.

Murthy GVAS will play a key role in directing Vodafone Idea’s financial strategy and growth in his new position as team leader of the company’s finance department. For Vodafone Idea, hiring a new CFO is critical as the business seeks to improve its financial standing and reclaim market share in the Indian telecom sector.

The Indian telecom industry has undergone significant changes in recent years due to intense competition, regulatory pressure, and market consolidation. The operating climate for Vodafone Idea, which was created by the merger of Vodafone India and Idea Cellular, has been challenging, with increasing losses and a significant debt load.

Overcoming Financial Challenges

The business has been strengthening its financial situation, including cost-cutting and raising capital through equity and debt issuances. The company revealed a net loss of INR 4,532 crore and a drop in revenue for the most recent quarter. Hiring a new CFO is anticipated to give the business new viewpoints and approaches to handling its financial difficulties.

Murthy GVAS has a plethora of expertise in overseeing the financial operations of significant organizations. He has held senior finance positions with organizations like Wipro, Lucent Technologies, and HCL Technologies, where he is credited with successfully transforming the finance department and fostering expansion.

His background in governance, investor relations, and financial management would be invaluable in assisting Vodafone Idea in enhancing its financial performance and regaining investors’ trust. Additionally, he will be instrumental in overseeing the finance division and advancing the company’s growth strategy thanks to his experience leading large teams and implementing change.

CEO of Vodafone Idea, Ravinder Takkar, issued the following statement: “Murthy GVAS joining us as our interim CFO fills us with joy. His broad financial industry knowledge and track record of successfully leading transformations will be key drivers of our financial strategy and growth plan. He will undoubtedly give our finance team excellent leadership and support as we negotiate the difficult operating environment we are now in.”

The appointment of Murthy GVAS as interim CFO is also expected to help Vodafone Idea’s initiatives to obtain money and lower its debt load. The business has been in talks with possible investors to raise new funding, and hiring a new CFO may help boost investor confidence in the firm’s financial standing.

Net Earnings

On February 14, the business also made available its third-quarter earnings. The telecom company’s net loss increased from the previous quarter’s $7,595.5 crore to $7,990 crore in the current quarter. As of December 31, 2022, the corporation has adjusted gross revenue liabilities of 69,910 crore and delayed spectrum payment commitments of 1.39 lakh crore, totalling 2.22 lakh crore (excluding leasing liabilities and including interest incurred but not payable).

The opening price of the Vodafone Idea share on February 15 was slightly higher than the last close of 7.69, at 7.71. The stock’s intraday range was 7.76 for the high and 7.66 for the low. More specifically, the EBITDA margin for the quarter was 39.4%, and EBITDA totalled Rs 41.81 billion for the firm. This was primarily because of higher costs to get new customers and increased operating costs, which were mitigated by lower fees for using the spectrum.

With 121.6 million 4G customers at the end of the quarter, Vi added 1 million new 4G subscribers, which slightly increased average data usage from 15 GB to 15.1 GB. The average quarterly revenue per user (ARPU) of Rs 135 is a 17.4% year-over-year growth from Q3 FY22’s ARPU of Rs 115 and Q4 FY21’s ARPU of Rs 131. The telco’s net debt was Rs 2.2 trillion at the time.

In conclusion, the appointment of Murthy GVAS as interim CFO of Vodafone Idea is a positive development for the company. His extensive experience in finance and proven track record in driving successful transformations will be crucial in helping the company to address its financial challenges and drive growth. As the Indian telecom industry continues to evolve, Vodafone Idea must remain agile and adapt to the changing market conditions. The appointment of a new CFO is a crucial step in this direction.

Edited by Prakriti Arora