Vodafone India made its first net profit since starting the telecom business in the country in 2007.
For the fiscal year ended March 2014, operating profit for the India unit of Vodafone Group Plc grew 26% to $2.277 billion (Rs 133.986 billion), according to Economic Times.
The telecom operator didn't reveal the net profit data for FY2013-14.
Vodafone India benefited from reduced competition, which allowed it to slash discounts and raise call rates while data usage also soared, underlining a recovery in the telecom sector.
On an organic basis, “India service revenue increased 13% to $6.391 billion (Rs 376.06 billion), as the growing customer base used greater quantities of voice,” Vodafone said in a statement.
During the year, Vodafone India was the leading market for the group in terms of organic growth, even as its European business decreased 9.1%, bringing the overall revenue down 4.3%.
Vodafone India MD & CEO Marten Pieters said, “We have turned net profitable for the first time indeed.”
He flagged issues like high taxes and levies on airwaves, inadequate 3G spectrum and unfavourable mergers and acquisition rules as impediments to growth.
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He also hoped that the next government, led by Narendra Modi, would improve ‘investor sentiment’ by bringing in steady and rational tax policies.