Latest news with #PrachurSah
Time of India
01-08-2025
- Business
- Time of India
Indus Towers stock falls over 4% as BNP calls cash conservation move 'perplexing'
Indus Towers shares fell over 4% in trade on Friday, a day after the passive telecom infrastructure company announced it would conserve cash in the short term and not return it to shareholders. In afternoon trade, Indus stock was down 4.1% at Rs 347.75 on the BSE. Explore courses from Top Institutes in Please select course: Select a Course Category Management Public Policy Cybersecurity CXO PGDM Others Healthcare Product Management Finance Leadership Technology Data Analytics Design Thinking Digital Marketing Project Management Operations Management MBA Data Science Data Science others MCA Degree Artificial Intelligence healthcare Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo 'Indus Towers' Q1FY26 results were slightly below our estimates, with rental revenue and EBITDA 1% lower than expected, while maintenance capex was higher. We are disappointed by the board's decision to conserve cash, attributing it to the evolving industry landscape, elevated capex, and potential inorganic growth opportunities,' brokerage BNP said in a report. It added that the decision was 'perplexing,' as tower additions are set to moderate in FY26 and the receivables issue has been largely resolved. The brokerage lowered its FY26–28E earnings per share estimate by 2–3%, stating that "Indus is set to remain a low to moderate growth business.' On Thursday, Indus Towers reported a 9.8% year-on-year fall in Q1 net profit to Rs 1,737 crore, driven by higher power and fuel costs, employee benefit expenses, and repair and maintenance costs. The fall came despite an Rs 88 crore write-back of provisions for doubtful receivables from Vodafone Idea (Vi), one of its key customers. Live Events The Bharti Airtel subsidiary posted a 9.1% year-on-year rise in revenue to Rs 8,058 crore. Rental revenue grew 10.1% YoY but was 1% below BNP's estimates. Organic tower additions slowed from 4,300 in Q4FY25 to 2,500 in Q1FY26, as Airtel's rural expansion has largely been completed. However, management expects robust tower additions to continue through FY26. During its earnings call, Indus said most of the backlog receivables from Vi were collected in FY25, contributing to a free cash flow of Rs 1,570 crore for the quarter ended June. Trade receivables declined by Rs 406.4 crore during the June quarter to Rs 4,361.1 crore, following Vi's repayment of Rs 88 crore in Q1FY26, said CEO Prachur Sah. The board's decision to conserve cash was driven by the evolving industry landscape, customer stability, elevated capex, and potential inorganic growth opportunities, Sah noted. He clarified that the decision is not a change in dividend policy but a short-term measure. 'The policy requires the board to consider predefined parameters, including the company's future cash requirements, before distributing free cash,' Sah said. He added that free cash flows generated in the previous and current fiscal years will be available for dividend payments once distributions resume. The company cited its elevated capex outlook as a key reason for conserving cash, with funds allocated toward tower growth, infrastructure replacement, and tenancy upgrades. Indus reported maintenance capex of Rs 1,190 crore in the first half of calendar 2025, nearly matching the capex for the entire 2024. Beyond tower additions, investments are expected in solar sites, battery upgrades to lithium-ion, and more diesel generators. 'These are upgrades that incur capex but do not always increase tower count,' Sah said, adding that maintenance capex is likely to remain high for the next 3–4 years as ageing infrastructure is upgraded.
Time of India
31-07-2025
- Business
- Time of India
Dues from Vi results in Rs 1,570 crore free cash flow for Indus Towers in June quarter
Indus Towers has said that most of the backlog receivables from Vodafone Idea has been collected in FY25, which has partly resulted in generating a free cash flow of Rs 1,570 crore in the quarter ended June. But the passive telecom infrastructure company has decided to conserve cash for the short term. With the cash-strapped telco clearing most of its past overdues to Indus, its trade receivables have come down by Rs 406.4 crore during the June quarter to Rs 4361.1 crore, after the telco paid back Rs 88 crore in Q1 FY26, Indus Towers CEO Prachur Sah during an earnings call Thursday. Explore courses from Top Institutes in Please select course: Select a Course Category Management Artificial Intelligence Finance Data Analytics Product Management Operations Management Data Science Public Policy CXO Digital Marketing Leadership healthcare Technology Others Cybersecurity Degree Project Management others Healthcare Design Thinking MBA PGDM Data Science MCA Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo 'We have collected most of the backlog receivables. As part of our cash management, instead of keeping the cash idle, we have either reduced our debt or used it for a very strategic acquisition,' Sah said. However, the Indus board has considered conserving cash in the short term. This decision was made taking into account various contextual factors, including the evolving industry landscape, the stability of their customers, the elevated capital expenditure (capex) for the company, and inorganic growth opportunities, Sah said. Vodafone Idea's auditors have reported material uncertainty in its March quarter results, adding that Vi's ability to settle its liabilities is dependent on support from the Department of Telecommunications regarding the adjusted gross revenue (AGR) matter, fund raise through equity and debt, and generation of free cash flow from operations. Live Events 'The Board will continue to monitor the evolving situation closely and reassess its decision by the end of the financial year. The Board remains fully committed to creating value for the shareholders, including by way of earliest possible reinstatement of distributions basis the above factors,' Indus said in an exchange filing late Wednesday. Indus management clarified that the decision to conserve cash was a conscious call by the board, and not a policy shift. 'The policy requires the board to consider certain predefined parameters including future cash requirement of the company before distributing it free cash,' Sah said, adding that free cash flow generated in the previous and current fiscal years will be available for dividend payment once the board decides to reinstate distributions. The company cited elevated capex outlook as a reason for conserving cash in the short term., adding that capex will be allocated for further growth in its tower business, replacing aging infrastructure, and preparing its towers for higher tenancy. Indus reported maintenance capex of Rs 1190 crore in the first half of calendar year 2025, which is nearly equal to the company's capex for the whole of 2024. Beyond tower additions, the company expects investments in solar sites, replacing and upgrading batteries to lithium-ion and adding more diesel generators. 'These are upgrades that incur capex but do not always add to the tower count,' Sah said, adding that maintenance capex is expected to remain elevated for the next 3-4 years as it continues to upgrade its aging infrastructure. Indus Towers said the total number of 5G base stations marginally increased to 487,000 in the June quarter, adding that while 5G deployment momentum has slowed, its contributions remain a meaningful driver for revenues. As 5G adoption deepens, there is an expectation for a natural rise in demand for additional sites to ease network congestion. Indus said the first quarter's rollouts were also seasonally affected, and will show up as rollouts in subsequent quarters.
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Business Standard
02-05-2025
- Business
- Business Standard
Indus Towers shares tumble 7% as Q4 profit dips; results breakdown here
Shares of Indus Towers fell over 7 per cent on Friday, even as the broader market rallied, after the telecom firm reported a 4 per cent year-on-year (Y-o-Y) decline in the March quarter profit. The telecom infrastructure company's stock fell as much as 7.2 per cent during the day to ₹378.65 per share. The stock pared losses to trade 5.3 per cent lower at ₹386.4 apiece, compared to a 0.25 per cent advance in Nifty50 as of 11:28 AM. The stock is currently at the lowest level since April 17 this year. The company's counter has fallen over 8 per cent from its recent peak of ₹421, which it hit last month. The stock has risen 12.5 per cent this year, compared to a 3.89 per cent advance in the benchmark Nifty50. The company has a market capitalisation of ₹1.01 trillion, according to BSE data. Indus Tower Q4FY25 Results analysis The company reported a net profit of ₹1,779 crore for the March quarter, registering a decline of 4 per cent Y-o-Y. The revenue for the just-ended quarter came in at ₹7,727 crore, up 7.4 per cent, compared to the same period last year. The Q4 FY25 had a provision of ₹226 crore for doubtful receivables, aided by collections against past due. For the full year ended March 2025, the consolidated revenues stood at ₹30,123 crore, up 5.3 per cent. The consolidated profit after tax was ₹9,932 crore, up 64.5 per cent. Also Read It said the industry developments during the year have only strengthened the outlook for the company and the sector. The company exuded confidence about maintaining the "momentum" by capitalising on customers' network expansion and available strategic opportunities. Indus Tower management commentary 'Financial Year 2025 was another excellent year for us, marked by a strong all-round performance,' said Prachur Sah, Managing Director and CEO of Indus Towers Ltd. 'We achieved one of our highest-ever tower and co-location additions, securing a major share of our customers' rollouts. The acquisition of a key tower portfolio further reflects our agility in driving growth.' Sah added that this momentum supported the company's robust financial performance, including healthy cash flow generation. 'I'm also pleased that our continued engagement with a major customer led to the recovery of its outstanding dues this year,' he said. About Indus Towers The company is a provider of tower and related infrastructure sharing services. It is one of the largest telecom tower companies in India based on the number of towers and co-locations operated by the company. As of March 31 2024, Indus Towers owned and operated 2,19,736 towers with 3,68,588 co-locations in 18 telecommunication circles.
Time of India
02-05-2025
- Business
- Time of India
Indus Towers to pay dividends after Vi clears dues, boosts cash flows
With Vodafone Idea clearing its large overdues to Indus Towers , the tower company said it plans to aggressively expand its market share using both organic and acquisition means. This includes participating in customer rollouts to secure a substantial share in tower growth, whether it isnew towers or bringing more tenancies in existing sites, or through acquisitions. #Pahalgam Terrorist Attack India's Rafale-M deal may turn up the heat on Pakistan China's support for Pakistan may be all talk, no action India brings grounded choppers back in action amid LoC tensions Indus received Rs 5,100 crore from Vodafone Idea in the previous fiscal as payment of past overdues, leading to a substantial boost in free-cash-flow, which stood at Rs 3,872.6 crore in FY4Q, versus Rs 332.8 crore a year ago. The Indus board has thus decided to appoint a subcommittee to comprehensively assess the modalities of distributing dividends to shareholders, its top management said at the company's fiscal fourth quarter earnings call Thursday. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The cost of hearing aids in Guntur might surprise you! Learn More Undo 'Given that now we have the backlog issue behind us, the strategy includes aggressively pursuing market share through both organic and inorganic roots as demonstrated by our acquisition of towers,' Indus Towers CEO Prachur Sah said on the call. This involves capturing a significant share in customer network rollouts, securing opportunities for tower growth, either through new towers or additional tenancies, Indus said. The company is also looking at opportunities for industry consolidation through acquisitions, as demonstrated by the purchase of around 12,600 towers from Bharti Airtel in the previous fiscal. Live Events Indus said it continues to have a major share in network rollouts of its customers and has consistently maintained majority market share. The company was also in talks with sister brand Bharti Hexacom to acquire another 3,400 telecom towers , but that deal has been put on hold, the management confirmed. Indus on Wednesday reported a 4% fall in fourth-quarter net profit, hurt by an accounting impact from its acquisition of telecom towers from Bharti Airtel and higher net finance costs, despite writing back provisions made against doubtful receivables from Vodafone Idea. The telecom tower company posted a net profit of Rs 1,779 crore for the quarter ended March 31. Revenue grew 7.4% from a year earlier to Rs 7,727 crore. Thursday, Indus said that the recently acquired towers from Airtel are largely single-tenancy sites, and the company will be working to add incremental tenancies to these sites. The Indus management said the company is working on creating new benchmarks for performance by transforming its site infrastructure and leveraging digital solutions and AI, which will encourage its customers to move tenancies to Indus. With the generation of significant free cash flow in the previous fiscal, Indus is committed to distributing cash to shareholders, Sah said, adding that the subcommittee's process is not expected to be a long-drawn one. 'The company has generated a significant amount of FCF for the enabled us to return a part of it to the shareholders through the buyback during the year,' he said.
Mint
01-05-2025
- Business
- Mint
Indus Towers downplays satellite internet impact on operations
Over a month after Bharti Airtel and Jio signed agreements with SpaceX to distribute Starlink satellite internet services in India, Indus Towers—the country's leading telecom infrastructure provider—said it does not anticipate any impact on its operations from such developments. 'Based on our discussions with telecom operators, there are limitations and commercial constraints as far as satellite technology is concerned," Prachur Sah, managing director and CEO of Indus Towers, said during a call with analysts on Thursday to discuss the January-March quarter earnings. 'So, we don't see any risk for the terrestrial networks in the foreseeable future and I don't expect that to impact us any time soon," he added. Also read: Indus Towers Q4 Results: Net profit drops 4% to ₹ 1,779 crore, revenue rises 7.4% YoY Comments from Sah assume significance as there were concerns that its tower infrastructure business could get affected once satellite internet services tap the Indian markets. This is because satellite internet beams connectivity directly from satellites to user terminals, thereby reducing the dependence on tower infrastructure for connectivity especially in rural markets in the long run, according to analysts. Further, the company's stock also witnessed selling pressure and fell 8% on 12 March after telecom operators announced partnerships with SpaceX. Analysts, however, do not expect Starlink to be disruptive to Indian telecom companies at least in the near-to-medium term. 'Starlink is unlikely to be disruptive for three reasons. Its capacity constraints will necessitate premium pricing, it needs telco tie-ups for distribution/installation and backhaul, and the government also seems to be inclined to balance the interests of telcos and satellite operators," said brokerage Jefferies in a note dated 27 March. Indus Towers is a subsidiary of Bharti Airtel, which owns 50% in the company. Besides Airtel, the tower company also counts Vodafone Idea as one of its major customers. In March, Vodafone Idea had cleared all undisputed overdue amounts to Indus Towers, thereby helping the towers company increase its operating free cash flow by 73% year-on-year (y-o-y) to ₹ 1,257 crore in the January-March quarter. 'Our continued engagement with a major customer (Vodafone Idea) ensured recovery of its overdues this year," Sah said. In FY25, Vodafone Idea cleared about ₹ 5,100 crore dues it owed to Indus Towers. 'Given that now we have the backlog issue behind us…the strategy includes aggressively pursuing market share through both organic and inorganic routes as demonstrated by our acquisition of Bharti Airtel's towers. With the scale of Indus, we are working on transforming our site infrastructure and leveraging digital solutions and AI to create new benchmarks of performance," Sah said, adding that this would encourage customers to move tenancies to Indus. Also read: Amazon wants to be a satellite-internet powerhouse. It has a long way to go. During the quarter, analysts had expected Indus Towers to announce dividends for its shareholders. However, the company said it has formed a committee to assess the modalities of cash distribution to the shareholders, and it will soon make disclosures to the exchanges on the same. Last year, the company conducted a ₹ 2,640 crore share buyback—its first since 2016. On its announcement to foray into the electric vehicle (EV) charging infrastructure space in the preceding quarter, Sah said the company is conducting the commercial pilot and based on that it will take a call whether to expand or hold back the same. In the January-March quarter, Indus Towers revenue from operations grew 7.4% y-o-y to ₹ 7,727 crore on the back of growth in network rollout by telecom operators amid higher data consumption trends. The company's net profit fell 4% to ₹ 1,779 crore owing to the impact of operating expenses and depreciation. During the quarter, the company acquired 12,774 towers worth ₹ 2,174 crore from Bharti Airtel. As on 31 March 2025, Indus Towers had 249,305 towers, adding 14,662 from a quarter ago and 29,569 from the year ago period. Its co-locations were at 405,435, up 18,616 from the previous quarter and 36,847 from the year ago. Co-locations mean the number of telecom operators (or tenants) that have installed their equipment on a single tower. An increase in co-locations leads to higher recurring revenue for tower companies like Indus Towers. On Thursday, shares of Indus Towers ended up 1.3% at ₹ 408.05 on the BSE. Also read: Amazon's Project Kuiper internet network satellites: How much will it cost? Can it compete with SpaceX Starlink?
