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Informist, Tuesday, Oct. 22, 2024

By Jahanvi Kothari

MUMBAI – Indus Towers Ltd. reported a consolidated net profit of INR 22.24 billion for Jul-Sept, up 15.5% from INR 19.26 billion a quarter ago. Analysts had expected the company's net profit to be in the range of INR 16.72 billion-18.25 billion. The company's consolidated revenue from operations was INR 74.65 billion, up 1.1% from INR 73.83 billion a quarter ago. On a year-on-year basis, the mobile tower installation company's bottom line was up 71.7% and revenue was up 4.7%. Other income rose 102% to INR 1.14 billion this quarter from INR 564 million a quarter ago, and up 17% from a year ago.

The company reported earnings before income, taxes, depreciation, and amortisation of INR 49.07 billion in the latest quarter, up 42% on year. Total expenditure was INR 25.58 billion, down 9.9% from INR 28.38 billion a quarter ago. Finance costs were INR 4.61 billion, down marginally from INR 4.59 billion a quarter ago. The tax outgo for the quarter was INR 7.57 billion, up from INR 6.66 billion a quarter ago.

The EBITDA margin expanded to 65.7% from 61.6% a quarter ago. The company reported a total tower base of 229,658 units, up from 225,910 a quarter ago. The company wrote back INR 10.77 billion in provisions for doubtful receivables in the latest quarter, aided by collections against past overdue.

Indus Tower's repairs and maintenance costs rose 6.7% in the latest quarter to INR 3.83 billion. The company's average sharing factor was 1.66 times per tower in the September quarter, against 1.67 times in the previous quarter.

"Our operational performance reflects sustained demand for network expansion and our endeavour towards securing a larger share of our customers' rollouts," Managing Director and Chief Executive Officer Prachur Sah said in an earnings press release. "This continues to drive our financial performance, aided by steady collection of past overdue from a major customer. Given a healthy cash generation, we rewarded our shareholders through buy-back during the quarter. We expect the performance to continue in the wake of network expansion plans of our customers over near to medium term. Guided by our strategic priorities and inherent capabilities, we remain confident of capitalising on these opportunities and generating value for all our stakeholders."

During the September quarter, the board of the company completed a buyback of its 56.8 million equity shares at INR 465 per share, resulting in an increase in the shareholding of Bharti Airtel Ltd. in Indus Towers to 50.01% from 48.95%. Bharti Airtel holds 50% stake in the company whose leading customers include Bharti Airtel itself, together with Bharti Hexacom Ltd., Vodafone Idea, and Reliance Jio Infocomm Ltd.

On Tuesday, shares of Indus Towers closed at INR 366.75 on the National Stock Exchange, down 2.3%.  End

Edited by Manisha Baxla

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