Vodafone India has reported a 41 per cent growth in operating free cash flow (OFCF) at Rs.4,771 crore for the six months ended September 30, 2013, against Rs.3,378 crore in the same period in the previous year.

Service revenue grew by 13.5 per cent to Rs.18,481 crore from Rs.16,283 crore.

Revenue performance was driven by hardening of price, strong growth in voice minutes and data revenues, the company said.

Vodafone India reported EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs.6,519 crore as compared to Rs.4,993 crore, up 30.6 per cent. During the period, the company had capital expenditure of Rs.1,909 crore compared with Rs.1,705 crore in the year-ago period, up 12 per cent.

The company said its data (browsing) revenue increased by 76.5 per cent to Rs.1,542 crore from Rs.874 crore. Browsing revenues now account for 9 per cent of the service revenues of the company.

Data usage and revenue growth was led by increasing smartphone penetration at 10.7 per cent of the total base.

“We continue to show a healthy revenue growth driven by price hardening, an exponential growth in data, and a solid subscriber base. Our focus on profitable growth has led to a strong margin improvement and to a strong operating free cash flow,” said Marten Pieters, Managing Director and CEO, Vodafone India.

PTI reports from New Delhi:

Rs.7,100 cr additional investment

Vodafone India is planning to invest 700 million pound (about Rs.7,100 crore) in the next 2-3 years, mainly on rolling out 3G network.

This will be in addition to Rs.4,000-6,000 crore annual investments the company has been making in recent years.

It will be part of the Project Spring under which the Vodafone Group will invest 7 billion pound by March, 2016, to establish stronger network and service differentiation in major global markets.

“About 10 per cent (of 7 billion pound) in the 2-3 years, depends also on what is available... The investment will be above the normal level of investment we would have done so its like catch up investment,” Mr. Pieters told PTI.

About the investment climate, Mr. Pieters said it had improved, but there were still things which needed to be decided.

“We think the environment has improved but a lot of it is still undecided. It looks better but we are waiting for rules around spectrum pricing, we are waiting for the M&A rules, we are waiting for the rules for the auction. So we don’t know (yet). We will only know when the outcome is there, but so far so good,” he said.

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