Shares of telecom service provider Vodafone Idea Ltd. are trading with gains of over 8% on Monday and gaining for the second day in a row. The stock had gained 1.4% on Friday as well, snapping a four-day losing streak in the process.

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The stock's intraday high of ₹11.95 is the highest level seen by the stock since October 19.

At the India Mobile Congress 2023 in New Delhi on Friday, Vodafone Idea Chairman Kumar Mangalam Birla said that the company will make significant investments in the upcoming quarters for the rollout of its 5G network.

Birla did not share any specific timeline as to when Vodafone Idea will roll out its 5G network. In an interview with CNBC-TV18 in October last year, Birla said that the telecom operator would roll out its 5G network "soon", a comment reiterated in April this year.

For the most recent quarter, Vodafone Idea's net loss expanded to ₹8,737.9 crore, which was higher than expected due to higher-than-expected tax.

The company had created a tax provision of ₹822 crore after the recent judgement of the Supreme Court to treat license fees paid to the Department of Telecom since July 1999 as capex and not revenue expenditure.

Post its quarterly results, the company delayed its earnings call with analysts citing "unavoidable circumstances." The management will now hold the earnings call today, at 2:30 PM IST.

Brokerage firm CLSA cut its financial year 2024-2026 revenue and EBITDA forecast for Vodafone Idea by 5% and 14% respectively post the company's quarterly results.

CLSA has a "sell" rating on Vodafone Idea with a price target of Rs 6.

14 out of the 17 analysts that track Vodafone Idea have a "sell" rating on the stock, while the other three have a "hold" rating. No analyst has a "buy" call on the stock.

Vodafone Idea lost over 1.3 million subscribers in July as per the latest data released by the Telecom Regulatory Authority of India (TRAI). The company had lost 3 million subscribers in April and May as well.

Shares of Vodafone Idea are trading 8.7% higher at Rs 11.85.

First Published:Oct 30, 2023 11:11 AM IST