Vodafone Idea Ltd.’s shares fell over 5% on Wednesday, following the release of its third-quarter earnings report.

The telecom giant reported a revenue increase of 1.7% to Rs 11,117.30 crore, which fell short of Bloomberg’s estimate of Rs 11,363.30 crore. The company’s earnings before interest, taxes, depreciation, and amortisation rose by 4% to Rs 4,712.40 crore, below the estimated Rs 4,808.40 crore. The Ebitda margin stood at 42.4%, marginally above the estimated 42.3%.

Vodafone Idea’s net loss for the quarter was Rs 6,609.30 crore, which was lower than the estimated Rs 6,890.30 crore. While the reduction in net loss is a positive sign, it was not enough to offset the overall market sentiment, leading to the decline in share price.

In the last quarter The Aditya Birla Group company posted a loss of Rs 7,175.9 crore in the July–September period in comparison to Rs 6,432.1 crore in the preceding quarter ended June 30. Analysts tracked by Bloomberg had a consensus estimate of Rs 6,429 crore.

After the earnings, UBS and JPMorgan are optimistic that increased capital expenditure will drive growth in the fourth quarter. However, concerns persist regarding subscriber loss and average revenue per user, which lags behind competitors like Airtel and Jio.

UBS, JPMorgan, and CLSA have maintained their ratings on the company, but are looking for further indicators from the post earnings concall, to guide their future outlook.

Vodafone Idea Share Price Today

Shares of Vodafone fell as much as 5.78% to Rs 8.31 apiece. They pared some loss to trade 5.10% lower at Rs 8.37 apiece, as of 09:44 a.m. This compares to a 0.76% decline in the NSE Nifty 50.

The stock has fallen 42% in the last 12 months. Total traded volume so far in the day stood at 2 times its 30-day average. The relative strength index was at 42.

Out of 22 analysts tracking the company, four maintain a ‘buy’ rating, six recommend a ‘hold’ and 12 suggest ‘sell’, according to Bloomberg data. The average 12-month analysts’ consensus price target implies a downside of 41%.

. Read more on Markets by NDTV Profit.Vodafone reported a revenue increase of 1.7% to Rs 11,117.30 crore, which fell short of Bloomberg’s estimate.  Read MoreMarkets, Business, Notifications 

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