Vodafone India cash flow beats that from MNC’s UK home

By: |
New Delhi | July 05, 2016 6:31 AM

British telecommunications company Vodafone Group Plc got more free cash flow from its Indian operations compared to its business in its home country during the last financial year, according to data from its annual report for FY16.

British telecommunications company Vodafone Group Plc got more free cash flow from its Indian operations compared to its business in its home country  during the last financial year, according to data from its annual report for FY16.

During the fiscal through March 2016, Vodafone India generated 544 million Euros, more than double than its Vodafone UK operations that gave 265  million Euros, the data showed.  The operating cash flow from the Indian operations came despite a lower dividend from its 42% shareholding in Indus Towers, a three-way joint venture with Bharti Airtel and Idea Cellular.

During FY15, Vodafone India’s operating FCF was at 332 million Euros, while its UK operations generated 185 million Euros, the data showed.

For FY16, Vodafone Group’s operating FCF was 0.73% higher or at 2,884 million Euros compared to its FY15 operating FCF of 2863 million Euros. In fact, Germany contributed the largest operating free cash flow of 651 million Euros, followed by its African unit Vodacom, which gave 792 million Euros.

However, the operating free cash flow from Vodafone India to its parent company assumes significance given that the domestic operations contribute only 12% to its overall revenue, much lower than its Germany operations that constitute 19% of revenue but slightly higher than the 9% revenue contribution from Vodacom. The higher operating free cash flow is a measure of the company’s financial performance and the amount that is available to be given to shareholders as dividend. The better operating FCF of Vodafone India subsidiary makes the company’s proposed share sale to the public much more attractive because of the better returns that the investors can anticipate to recieve.

graph4

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Infinix InBook X1 series laptops with 10th-Gen Intel Core processors, Windows 11 launched in India; price starts at Rs 35,999
2MSME lender Indifi Technologies disburses loans worth Rs 500 crore to SMEs in Q2FY22; up by 43% from previous quarter
3Frequent CEO changes reduce companies potential to improve equity premium: Study