Indus Towers reports Q2 2023 revenue of Rs 7,133cr with 10% Y-o-Y decline

Indus Towers Limited, India’s major passive telecom infrastructure provider, has unveiled its audited consolidated results for Q2 ending September 30, 2023. The data showcases a consolidated revenue of Rs. 7,133 Crores, indicating a 10% decrease Y-o-Y. Conversely, consolidated EBITDA amounted to Rs. 3,456 Crores, reflecting a 23% rise Y-o-Y and an operating margin of 48.5%. Moreover, the quarter’s net profit stood at Rs. 1,295 Crores, which is a 49% growth on a Y-o-Y basis.

Key Financial Performance Metrics

Net Profit and Return on Equity

The quarter under review saw a robust net profit growth, which surged by 49% Y-o-Y to Rs. 1,295 Crores. The Return on Equity (Pre-Tax) diminished to 20.4% from 32.3% Y-o-Y, and the Post-Tax figure also declined, settling at 15.1% against 24.2% on a Y-o-Y basis.

Capital Performance

The company’s Return on Capital Employed dwindled to 14.0% compared to 19.2% Y-o-Y. Significant to note is the revenue for Q2 FY23 which encompassed a benefit of Rs. 1,076 Crores arising from deferred recognition of revenues, counteracted by an impact of Rs. 1,771 Crores because of the provision for doubtful debt.

Prachur Sah, the Managing Director and CEO of Indus Towers Limited, opined on the quarter’s achievements:  “The quarter marked Indus Towers reaching a milestone of 200,000 macro towers, reaffirming its leadership position. We are also proud to have delivered another quarter of our highest tower additions which translated into a steady financial performance.”

He also commented on future prospects: “Our endeavour to capitalize on the existing opportunity arising from rapid network expansion by a major customer and 5G rollouts by operators will help in sustained value creation for shareholders.”

Overview of Q2 2023 Highlights

• A total tower base of 204,212 with a closing sharing factor of 1.73.
• EBITDA settled at Rs. 3,456 Crores, marking a 23% ascent Y-o-Y.
• Notable achievement of 200,000 Macro Towers with the highest-ever tower additions.

About Indus Towers Limited

Indus Towers Limited is recognized as India’s premier provider of passive telecom infrastructure. It manages and deploys communication structures and telecom towers for diverse mobile operators. With an impressive portfolio of over 2,04,000 telecom towers across all 22 telecom circles in India, it stands as a colossal tower infrastructure entity in the country.