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Indus Towers reports Rs 1,853 crore net profit in Q4FY24

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In Short:

Indus Towers had a net profit of Rs 1,853 crore in the fourth quarter of the fiscal year ending March 2024, a 19% increase from the previous quarter. The company’s revenue for the quarter was Rs 7,193 crore, up 6.5% year-on-year. The tower company added a record number of towers driven by Bharti Airtel’s 5G rollout. Vi’s financial challenges impacting Indus’ stability. They are in talks with Vi for dues recovery.

Indus Towers Reports 19% Growth in Net Profit in Q4

Indus Towers, a leading tower company, announced a net profit of Rs 1,853 crore in its fiscal fourth quarter ended March 2024. This marks a significant increase from Rs 1,399 crore reported a year ago. The growth was driven by record tower additions from Bharti Airtel’s 5G rollout and steady collections, along with the clearance of overdues from Vodafone Idea.

Financial Performance

The net profit of Indus Towers grew by 19% sequentially from Rs 1,541 crore in the previous quarter. For the fiscal year ended March 31, 2024, the company’s consolidated net profit surged by 196% year-on-year to Rs 6,036 crores.

Indus Towers reported a consolidated revenue of Rs 7,193 crore for the January-March quarter, showing a 6.5% year-on-year growth.

Operational Highlights

Prachur Shah, the Managing Director of Indus Towers, expressed satisfaction with the company’s performance, citing strong operational and financial achievements. The company surpassed the milestone of 200,000 towers through network expansion by a major customer and market share growth. Shah also mentioned positive developments around Vodafone Idea’s fund raise, which will support Indus Towers’ growth.

Financial Stability

Indus Towers carries an allowance for doubtful receivables of Rs 5385.3 crore from Vodafone Idea as of March 31, 2024. The company is in discussions with the telecom operator for a revised payment plan to recover the dues. Vi has been making regular payments since January 2023, ensuring revenue recognition for Indus Towers.

Vi’s financial challenges continue to impact Indus Towers, as the telecom operator contributes over 40% of the tower company’s revenues. The ongoing financial struggles of Vi have posed challenges for Indus Towers’ long-term financial stability.

Stock Performance

Indus Towers’ stock closed 0.85% higher at Rs 354.8 on the BSE, following the announcement of the quarterly results. The company added 7,961 towers in the fiscal fourth quarter, ending with 219,736 towers across 22 telecom circles in India, with 368,588 co-locations.

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