Indus Towers tumbles ~7% on lackluster numbers in Q1FY23

3 Aug 2022 , 10:16 AM

Indus Towers Limited announced its consolidated results for the quarter ended June 30, 2022. However, company’s performance was impacted mainly due to prudent accounting practice that reflects stress on receivables from one of its major customers.

The company reported a revenue of Rs6,897 crore in Q1FY23, marginally up against Rs6,797 crore in Q1FY22.

Indus Towers reported a 34% yoy decline in EBITDA of Q1FY23 at Rs2,322 crore as compared to Rs3,529 crore in the previous corresponding quarter.

Company’s Profit After Tax dipped significantly by 66% on a y-o-y basis at Rs477 crore in Q1FY23, as against Rs1,415 crore in the previous corresponding quarter.

The Operating Free Cash Flow stood at Rs807 crore, down by 60% yoy.

The Return on Equity (Pre-Tax) dropped to 39% as against 40.5% on yoy basis. Return on Equity (Post Tax) declined to 29.5% as against 30.4% yoy basis.

Bimal Dayal, Managing Director and CEO, Indus Towers Limited (Formerly Bharti Infratel), commented, “Our business has strong fundamentals, and successful completion of 5G auctions has further improved the outlook for the company. Indus is well-placed to enable timely and quality 5G rollout.”

The company has a total Tower base of 186,474 with a closing sharing factor of 1.80 as of June 30, 2022.

At around 10.09 AM, Indus Towers was trading at Rs205.15 down by Rs14.1 or 6.43% from its previous closing of Rs219.25 on the BSE. The scrip opened at Rs212.55 and has touched intraday high and low of Rs213.90 and Rs202.60 respectively.