Telecom infrastructure player Indus Towers expect a robust orderbook for towers and co-location requirements from operators to drive its future growth, with Vodafone Idea having significantly resumed its network expansion in the December quarter.
“This was a strong quarter with both tower and colocation additions… The resumption of network expansion by a major customer [Vodafone Idea] bodes well for us. Similar to Q3FY25, we are well-placed to capture a meaningful share of its tenancy additions in the coming quarters,” said Prachur Sah, Managing Director and CEO of Indus Towers, during the earnings call on January 24.
The company said it has clear visibility regarding tower and colocation additions from private telecom operators for the next three to four quarters.
Sah noted that Indus Towers is well-positioned to capitalize on tenancy growth, particularly with Vodafone Idea. “...We are in a prime position to monetize towers currently hosting a single tenant as Vodafone Idea scales its network expansion. This broad strategy enables us to remain ahead in terms of network readiness and tenancy opportunities,” he added.
While building new towers for Vodafone Idea will depend on their network expansion plans, Sah was confident of Indus Towers’ ability to accommodate their requirements. “With the existing footprint, we can capitalize on their tenancy needs and ensure their expansion plans are met effectively,” he said.
On January 23, Indus Towers reported a consolidated net profit of Rs 4,003 crore for Q3FY25, marking a 159.9% on-year increase from Rs 1,541 crore in the same quarter of the previous fiscal year. This growth was attributed to significant overdue collections from Vodafone Idea and strong tower additions. The company’s revenue from operations rose by 4.8%, reaching Rs 7,547 crore compared to Rs 7,199 crore in the year-ago period. Its Q3 EBITDA surged by 93.2%, standing at Rs 6,997 crore, up from Rs 3,622 crore in the corresponding quarter last year.
Vikas Poddar, Chief Financial Officer at Indus Towers highlighted the financial boost from overdue recoveries. “During the quarter, we collected Rs 1,910 crore from the monetization of the secondary pledge on shares held by Vodafone Plc in Indus Towers. Additionally, we recovered more overdue amounts from a major customer, resulting in a write-back of Rs 3,020 crore in doubtful debt provisions, reducing our doubtful debt provisions to about Rs 500 crore,” Poddar said.
Read More: Indus Towers targets double-digit returns from EV charging plans
He further noted that the write-back significantly contributed to the company’s profitability. Adjusted for the write-back, EBITDA saw an 8.3% on-year and 3.7% QoQ rise.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
