Vodafone Idea’s turnaround plan contingent on execution, tariff hikes; may benefit Indus Towers: Analysts

NEW DELHI: Vodafone Idea’s (Vi) recently unveiled turnaround plan, which entails a capital expenditure (capex) of ₹45,000 crore over the next three years, will require balanced execution, tariff hikes, and competitive dynamics for success, according to analysts.

“At an analyst meet, the (Vodafone Idea) management has charted aggressive investment and growth plans for the next 3 years, entailing ₹45,000 crore of capex and cash EBITDA growing 3x. The implied 15% revenue CAGR, however, appears aggressive; success would be contingent on execution, tariff hikes, and competitive dynamics. Nonetheless, this augurs well for Indus Towers,” Citi Research said in a note on Wednesday.