Cash-strapped Vodafone Idea requires moratorium on interest to stay afloat

Company spent Rs 5,200 crore on interest payment in Q1, equal to 57% net sales

Vodafone Idea (Vi) will require a complete moratorium on debt and interest payments and simply deferring AGR (adjusted gross revenue) and spectrum dues, the biggest cost head for the firm, is unlikely to help it effect a turnaround.

The company spent nearly Rs 5,200 crore on interest payment in the first quarter of financial year 2021-22 (Q1FY22), which amounts to 57 per cent of its net sales. In FY21, Vi’s outgo on interest payments was nearly Rs 18,000 crore, or about 43 per cent of its net sales.

According to the terms of the telecom package announced last week by