The British telecom carrier has also classified its remaining 3% stake in Indus Towers as an “Other Investment” in its earnings statement for H1FY25 that was issued Tuesday.
“Operating profit on a reported basis increased by 28.3% to €2.4 billion (Rs 21,512 crore approx) in H1FY25 (FY24 H1: €1.9 billion), primarily driven by a €0.7 billion gain on the disposal of an 18% stake in Indus Towers in Q1,” Vodafone Group said in its earnings statement.
Back in June 2024, Vodafone Group Plc had sold 18% in Indus — out of its earlier 21.05% holding — for Rs 15,300 crore through an open market transaction. The stake sale proceeds were largely used to clear the bulk of the UK company’s existing lender dues relating to €1.8 billion of borrowings secured against Indian assets.
“Rs 15,300 crore in gross proceeds were used to substantially repay loans secured against our (India) investments in Indus Towers and Vodafone Idea (Vi),” Vodafone Plc added. Vi is the telecom JV between UK’s Vodafone and India’s Aditya Birla Group.
The British telco added that following the disposal of an 18% equity interest in Indus Towers, Vodafone Group has repaid €1,699 million (Rs 15,240 crore approx) of bank borrowings that are secured against the Group’s shareholdings in Indus and Vi. “€537 million of this repayment comprises accrued interest, which is included in Other movements in net debt together with the principal repayment of €1,162 million. €94 million (31 March 2024: €1,720 million) remains outstanding on the facility at 30 September 2024.”According to Vodafone, other movements in net debt for H1 FY25 includes a net outflow from discontinued operations of €224 million (H1 FY24: €242 million outflow), together with the partial repayment of borrowings secured against Indian assets of €1,699 million.“The decrease in borrowings of €1,234 million (Rs 11,061 crore approx) was primarily driven by the repayment of the bank borrowings secured against Indus and Vi assets of €1,699 million, repayment of bonds of €3,812 million, a net reduction in collateral liabilities of €449 million and favourable foreign exchange movements of €480 million, partially offset by the issue of new bonds of €3,352 million, an increase in lease liabilities of €1,118 million and an increase in other borrowings of €986 million,” Vodafone Group added in its earnings statement.