Indus Tower Q2 Results: Net Profit Increases 71.7%, Revenue Up by 4.7%

Indus Towers Ltd announced its Q2 results for the quarter ended September 30, 2024, reporting a remarkable net profit of ₹2,224 crore, a 71.7% increase year-on-year. Revenue from operations rose by 4.7% to ₹7,465 crore, compared to ₹7,133 crore in the same period last year.

In the second quarter, Indus Towers recorded a write-back of ₹1,077 crore in provisions for doubtful receivables, aided by collections against past overdue amounts. At the operating level, EBITDA surged by 42% to ₹4,907 crore, compared to ₹3,455.9 crore in Q2 of the previous fiscal year, with an EBITDA margin of 65.7%, significantly up from 48.5% in the corresponding period of FY24.

Quick Insights:

• Revenue: ₹7,465 crore, up by 4.7% YoY.
• Net Profit: ₹2,224 crore, increased by 71.7% compared to last year.
• Segment Performance: The company added 3,748 towers, ending the quarter with a total of 229,658 towers across India. Co-locations also increased by 4,308.
• Management's Take: Strong growth driven by significant tower additions and steady collections from Vodafone Idea (Vi). Outlook remains positive.
• Stock Reaction: Shares closed down by 2.63% post-results, on Wednesday.

Management Commentary:

Prachur Sah, Managing Director and CEO, Indus Towers Limited, said, “Our operational performance reflects sustained demand for network expansion and our endeavor towards securing a larger share of our customers’ rollouts. 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 buyback during the quarter. We expect the performance to continue in the wake of network expansion plans of our customers over the near to medium term. Guided by our strategic priorities and inherent capabilities, we remain confident of capitalizing on these opportunities and generating value for all our stakeholders.”

Stock Market Reaction:

The quarterly results were announced on Tuesday post market closing. On October 23, 2024, Indus Towers' shares opened at ₹381.15 and reached the day's high of ₹381.15 at 9:30 AM. On Wednesday, the company’s shares closed at ₹357.70, down by 2.63% from its previous close. 

About Indus Tower Ltd

Indus Towers Limited is India’s leading provider of passive telecom infrastructure, deploying, owning, and managing telecom towers and communication structures for various mobile operators. With a portfolio of 229,658 telecom towers, it is one of the largest tower infrastructure providers in the country, serving all 22 telecom circles. The company is also recognized for its green energy initiatives in operations. Vodafone Idea has paid ₹2,328 Crore of unpaid dues, including ₹1,028 Crore for the September 2024 quarter.