Vodafone Idea shares soar 12% in 2 days after HCL partnership to enhance 4G/5G networks. Discover the details now!
Shares of Vodafone Idea rallied almost 12% to an intra-day high of Rs 9.25. The stock has risen more than 15% in the last two trading days. The spurt in stock prices came after the company signed a pact with HCL Technologies’ software unit, HCL Software, to make its 4G and 5G networks smarter and more efficient.
Vodafone Idea will use HCL Augmented Network Automation (HCL ANA), a multivendor self-optimizing network (MV-SON) platform, to manage its Ericsson and Samsung networks.
The HCL ANA platform uses Artificial Intelligence (AI) to simplify the management of Vi’s complex multi-vendor, multi-technology and multi-layered network to ensure smooth integration and efficient network operations. “The platform is also SMO-ready (ORAN), making the investment future-proof,” said HCL Technologies in an exchange filing.
This partnership with HCLSoftware is a major step forward for Vodafone Idea. The AI-powered HCL ANA platform will streamline our network operations and provide a superior network experience to our customers. It also reflects Vi’s commitment to using advanced, Made-in-India technologies to improve services, reduce costs, and prepare for the future of telecom innovation,” Jagbir Singh, Chief Technical Officer of Vodafone Idea.
As part of its capital expenditure, Vodafone Idea awarded contracts worth Rs 30,000 crore to Nokia, Ericsson, and Samsung in September 2024. The deal is for the supply of network equipment over a period of three years.
Vodafone Idea’s performance in Q2
The telecom company reported a net loss of 7,176 crore in Q2 FY25, which widened from the Rs 6,432 crore posted in Q1 FY25. However, the company’s consolidated revenue from operations grew by 4% quarter-on-quarter, reaching Rs 10,932.2 crore in the second quarter of the current fiscal year. The company’s average revenue per user (ARPU) rose to Rs 166 in Q2 FY25 from Rs 154 in Q1 FY25, still lower than that of other industry peers.
Vodafone Idea Vs Nifty 50
The telecom operator’s stock has risen 8.5% in the last five trading sessions, including today’s movement. It has given a return of more than 9% in the past one month. However, the stock has wiped out 47% of investors’ wealth in the previous six months.
To compare, the benchmark index, Nifty 50 has fallen 1.9% in the past five trading days. The index has fallen 6% in the last one month and 5.7% in the previous six months.
Source: www.financialexpress.com