In a press release Wednesday, Indus managing director Prachur Sah mentioned the tower firm had recorded the very best quarterly tower additions within the firm’s historical past, outdoing the earlier quarter’s efficiency on this metric.
“Our endeavour to capitalize on the prevailing alternative arising from speedy community growth by a significant buyer and 5G rollouts by operators will assist in sustained worth creation for shareholders,” Sah mentioned within the assertion.
Indus’s consolidated income for the July-September quarter stood at Rs 7, 133 crore, down 10% on-year.
However the tower operator, among the many world’s largest, flagged continued restoration challenges from a key buyer – cash-strapped Vodafone Concept.
“The funding plan of the mentioned buyer (learn: Vi) has not materialised until the present quarter, and the mentioned buyer has indicated challenges in making dedicated funds pertaining to excellent quantities due as at December 31, 2022,” Indus Towers mentioned.
Indus, although, mentioned that because the mentioned buyer (learn: Vodafone Concept) has been paying sums, largely equal to month-to-month billing from January 2023, the corporate continues to recognise income from operations regarding this buyer for providers rendered.However as of end-September, 2023, Indus carried an allowance for uncertain receivables of Rs 5,653.3 crore regarding that buyer, the tower firm added.
Indus’ commerce receivables for the June quarter have risen sequentially to Rs 6, 186.3 crore from Rs 5,303 crore within the fiscal first quarter, indicating Vi’s persevering with monetary challenges.
“A big buyer accounts for a considerable a part of income from operations for the quarter and 6 months ended September, 2023, and constitutes a major a part of excellent commerce receivables and unbilled income as at September 30, 2023,” Indus mentioned.
The well being of loss-making Vi is important for Indus’ long-term monetary stability because the telco is a key buyer accounting for over 40% of the tower firm’s income. The Indus inventory closed 2% decrease at Rs 174.25 on the BSE. Outcomes for the September quarter had been introduced after market hours.
Within the fiscal second quarter, Indus added 5, 928 towers on-quarter and 16, 286 on-year throughout 22 telecom circles in India. Co-locations elevated 5, 583 sequentially and 15, 334 year-on-year. Co-locations are factors the place a tower firm deploys cellular telecom antennae of a number of carriers on a single construction.
As of September 30, 2023, Indus owned and operated 2, 04, 212 towers with 3, 53, 462 co-locations throughout India.