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Indus Towers Q3 hit by Vi's contagion, sends alarms bells ringing for investors

The state of panic for Indus Towers stems from Vi’s failure to cement a funding plan with its lenders, leading to shortfall in collection from the telco

January 24, 2023 / 10:15 PM IST
The contagion spreading from Vi could possibly have an

The contagion spreading from Vi could possibly have an "adverse effect" on the financial conditions of Indus Towers, the company said (Representational Image)

 
 
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The Q3FY23 results of Indus Towers have send alarm bells ringing after it became obvious that troubled times for Vodafone Idea (Vi) are set to continue for longer. Without naming the telco, the tower company in its financial results said that it had made provisions for a “doubtful debt allowance” of Rs 2,298 crore during the quarter ending December.

The contagion spreading from Vi could possibly have “an adverse effect on the business, results of operations and financial conditions” of the Indus Towers group, the company stated in its latest financial results.

The state of panic for the telecom tower company stems from Vi’s failure to cement a funding plan with its lenders. Vi had informed Indus Towers in the quarter ending June last year that it was in the process of finalising a funding plan with its lenders. Consequently, Vi had agreed to pay Indus Towers part of the monthly billing till December 2022. Vi had also agreed to pay all the dues outstanding till December 31, 2022, between January and June of this year.

ALSO READ: Indus Towers may discontinue services if Voda fails on advanced payments