Vodafone's Delhi belly will get worse

Vodafone announced a strong set of results last week, yet they could not avoid the looming dark cloud that is their Indian division. Things could easily get worse before they get better for the mobile giant in India.

Mobile giant Vodafone announced a solid set of results this week that were overshadowed by problems in its Indian division. In the year to the end of March revenue rose by 8.5% to £44.5bn, and pre-tax profits more than doubled to £8.7bn, helped by rapid progress on cost-cutting. Vodafone expects to grow its underlying revenues again in 2010/2011 and has pledged to grow the dividend by an annual 7% over the next three years. However, the group wrote down the value of its Indian business by £2.3bn.

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