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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?
Time of India
01-05-2025
- Business
- Time of India
Indus Towers Q4 net falls 4% on accounting impact, finance cost
New Delhi: Indus Towers 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 telecom tower company posted a net profit of ₹1,779 crore for the quarter ended March 31. Revenue grew 7.4% from a year earlier to ₹7,727 said one of its large customers (Vodafone Idea), which accounts for a substantial part of revenue and receivables, has cleared all undisputed overdue amounts in March 2025, resulting in a significant reduction in the allowance for doubtful receivables. As a result, the fiscal fourth-quarter results reflected a write-back of ₹226 crore in the provision for doubtful receivables. As on March 31, 2025, doubtful receivables related to Vodafone Idea was ₹298.1 crore, compared with ₹5,384.7 crore a year earlier. Net finance cost jumped nearly three times to ₹359.7 crore from ₹126.7 crore in the fourth quarter of the previous fiscal year. In the fiscal fourth quarter, Indus added 14,662 macro towers, taking its total to 249,305. Co-locations increased by 18,616 quarterly, ending the fiscal with 405,435 co-locations. Co-locations are points where a tower company deploys mobile telecom antennae of multiple carriers on a single structure. The tower additions included the assets it acquired from Bharti Airtel in February. As part of the ₹3,308.7 crore cash deal, Indus took over 10,380 macro towers and 2,226 lean co-locations. 'FY25 was another excellent year for us with an all-round performance. We delivered one of our highest-ever tower and co-location additions as we continued to garner a major share of our customers' rollouts,' chief executive Prachur Sah said. Sah said industry developments during the year has strengthened the outlook for the company and the sector, adding that Indus is confident of maintaining the momentum by capitalising on network expansions by its customers, Bharti Airtel and Vodafone Idea. The company's shares closed 1.34% higher at ₹408.05 on the BSE Wednesday. The results were announced after market hours.
Time of India
01-05-2025
- Business
- Time of India
Indus Towers Q4 net falls 4% on accounting impact, finance cost
New Delhi: Indus Towers 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. 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 said one of its large customers (Vodafone Idea), which accounts for a substantial part of revenue and receivables, has cleared all undisputed overdue amounts in March 2025, resulting in a significant reduction in the allowance for doubtful receivables. As a result, the fiscal fourth-quarter results reflected a write-back of Rs 226 crore in the provision for doubtful receivables. As on March 31, 2025, doubtful receivables related to Vodafone Idea was Rs 298.1 crore, compared with Rs 5,384.7 crore a year earlier. Net finance cost jumped nearly three times to Rs 359.7 crore from Rs 126.7 crore in the fourth quarter of the previous fiscal year. Live Events In the fiscal fourth quarter, Indus added 14,662 macro towers, taking its total to 249,305. Co-locations increased by 18,616 quarterly, ending the fiscal with 405,435 co-locations. Co-locations are points where a tower company deploys mobile telecom antennae of multiple carriers on a single structure. The tower additions included the assets it acquired from Bharti Airtel in February. As part of the Rs 3,308.7 crore cash deal, Indus took over 10,380 macro towers and 2,226 lean co-locations. 'FY25 was another excellent year for us with an all-round performance. We delivered one of our highest-ever tower and co-location additions as we continued to garner a major share of our customers' rollouts,' chief executive Prachur Sah said. Sah said industry developments during the year has strengthened the outlook for the company and the sector, adding that Indus is confident of maintaining the momentum by capitalising on network expansions by its customers, Bharti Airtel and Vodafone Idea. The company's shares closed 1.34% higher at Rs 408.05 on the BSE Wednesday. The results were announced after market hours.
