Indus Towers Q2 net profit jumps 71% to Rs 2,223.5 crore led by increased tenancies, tower additions

Indus Towers

Indus Towers, a leader in passive telecom infrastructure including towers and communication systems, announced a consolidated net profit of Rs 2,223.5 crore for the quarter ended September 2024, marking a 71% increase from Rs 1,294.7 crore in the same quarter last year.

Sustained demand for network expansion drove the company's growth during the period. In comparison, the company reported a consolidated net profit of Rs 1,926 crore for the previous quarter ended June 2023.

Additionally, Indus Towers saw its revenue from operations rise by 4.66%, reaching Rs 7,465.3 crore, up from Rs 7,132.5 crore in the corresponding quarter of the previous fiscal year.

Indus Tower’s Q2 EBITDA came in at Rs 5,021 crore against Rs 3,553 crore in the same period last year, a surge of 41.3 percent. The margin for the company also expanded 1744 bps to 67.3 percent from 49.8 percent YoY.

Total expenses for the quarter were Rs 2,548.2 crore, slightly higher than Rs 2,336.6 crore in Q2 FY24.

The company's total tower base stood at 229,658, up  by 25,446 new towers year-on-year with a closing sharing factor of 1.65.

The company said that in Q2 FY25, it wrote back Rs 1,077 crores in provision for doubtful receivables, aided by collections against past overdue.

“Our operational performance reflects sustained demand for network expansion and our endeavour 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," Prachur Sah, Managing Director and CEO, Indus Towers Limited, said in a statement.

Sah said the company expects the performance to continue in the wake of network expansion plans of its customers over 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.”