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Indus Towers slumps on weak June quarter earnings

Operating cash flow of the company tanked 60 percent year-on-year to Rs 807 crore for the quarter ended June

Mumbai / August 03, 2022 / 10:21 AM IST
 
 
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Shares of Indus Towers fell sharply on August 3 after the company announced weak earnings for the quarter ended June.

Consolidated net profit tanked 66 percent year-on-year to Rs 477 crore in the quarter as topline grew merely one percent to Rs 6,897 crore and operating profit shrank 34 percent to Rs 2,322 crore.

“Our financial performance was an outcome of our prudent accounting practice as there is stress on our receivables due to the financial position of one of our major customers,” the company said in an earnings statement.

Operating cash flow tanked 60 percent to Rs 807 crore reflecting the impact of non-payment from one of the customers.

Overall total towers grew 1,027 from the previous quarter to 186,474, which was weaker than the historical average for the company. Sharing revenue per tower fell 11.4 percent sequentially to Rs 75,688 in the reported quarter.

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“The fundamentals of our business remain strong, and successful conclusion of the 5G auctions has further improved our outlook,” said Bimal Dayal, managing director and chief executive officer at Indus Towers.

At 10:12 am, shares of Indus Towers were down 6.5 percent at Rs 205.2 on the National Stock Exchange.
Moneycontrol News
first published: Aug 3, 2022 10:21 am
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