Indus Towers has listed Rs.17,709 million as Provision for Doubtful Debts. This includes the amount that Vodafone Idea owes to the vendor.
The para says, “Our total expenses for the quarter ended September 30, 2022 were Rs 51,542 million, or 64.7% of our revenues from operations. The largest component of our expense during this period was power and fuel, amounting to Rs 27,177 million. The other key expenses incurred by us during the quarter ended September 30, 2022 were repair & maintenance (operations and maintenance costs of the network) of Rs 3,335 million, other expenses of Rs. 19,073 million (incl Provision for Doubtful Debts of Rs.17,709 million) and employee benefits expenses of Rs 1,957 million.”
Backgrounder-Sep 28, 2022
Mobile tower giant Indus Towers is learnt to have asked debt-ridden Vodafone Idea to clear outstanding dues and pay every month on time for continuity of business post-November, sources aware of the development said on Wednesday.
On Monday, Indus Towers held a Board meeting to discuss the company’s mounting trade receivables. Later, it issued a “strongly-worded” letter to Vi.
Indus Towers reportedly told Vi to clear its dues and pay 80 per cent of the current monthly dues immediately. It has also directed the company to pay 100 per cent of monthly dues “on time”.
Vi’s total tower dues exceed Rs 10,000 crore. Out of this, Rs 7,000 crore is owed to Indus Towers alone. Rs 3,000 crore is owed to American Tower Company (ATC).
At the end of June, Indus Towers operated 186,474 towers with Vi being its major buyer. Bharti Airtel owns a 47.76 per cent stake in the company, while Vodafone Group holds 21.05 per cent. Vi had sold its stake in the company after Indus Towers’ merger with Bharti Infratel.
At the end of June, Vi’s net debt stood at Rs 1.98 trillion, with its deferred spectrum payment dues at over Rs 1.16 trillion and debt from banks and financial institutions at Rs 15,200 crore.