Indus Towers Q1 profit jumps 182% to Rs 1,348 crore

Indus Towers has reported a nearly three-fold jump in consolidated net profit to Rs 1,348 crore for the June 2023 quarter.

The company had posted a net profit of Rs 477 crore in the same period a year ago.

Its revenue grew three per cent during the reported quarter to Rs 7,076 crore compared to Rs 6,897 crore in the year-ago quarter.

The company said strong tower additions on account of 5G rollouts and collections drive performance led to its growth during the June 2023 quarter even after making a doubtful debt provision of Rs 1,233 crore.

“We are pleased to have delivered a solid operational performance in Q1 FY24, with the highest quarterly tower additions in our history. The steady collections have aided our financial performance. We have made progress on key strategic priorities which are critical to our growth, competitiveness, and customer satisfaction. With the 5G rollouts by operators and network expansion of a major customer progressing at speed, Indus Towers is also keeping pace to capture the growth opportunity and create long term value,” said Prachur Sah, Managing Director and CEO, Indus Towers Limited.

He said that we are pleased to have delivered a solid operational performance in the first quarter of the financial year 2024, with the highest quarterly tower additions in our history. The steady collections have aided our financial performance.

“With the 5G rollouts by operators and network expansion of a major customer progressing at speed, Indus Towers is also keeping pace to capture the growth opportunity and create long-term value,” he added.

The company added 11,810 new towers on a year-on-year basis, taking the total count of installed tower base to 1,98,284 at the end of the June 2023 quarter.

The Consolidated revenue for the quarter was Rs.7,076 Crores, up 3% Y-o-Y. Consolidated EBITDA was at Rs. 3,514 Crores, up 51% Y-o-Y and representing an operating margin of 49.7%. The net profit for the quarter was Rs. 1,348 Crores, up 182% Y-o-Y. The Operating Free Cash Flow was at Rs. 535 Crores, down 34% Y-o-Y. The Return on Equity (Pre-Tax) dropped to 18.7% as against 39.0% on Y-o-Y basis [Return on Equity (Post Tax) dropped to 13.8% as against 29.5% Y-o-Y basis]. The Return on Capital Employed dropped to 13.8% as against 22% on Y-o-Y basis. The financials for Q1 FY23 were impacted by a provision for doubtful debt of Rs. 1,233 Crores.

CT Bureau