Indus Towers' profit down 44% y-o-y

28 Oct 2022 , 09:34 AM

Indus Towers, a provider of telecom infrastructure, on Thursday reported a roughly 44% decline in its consolidated net profit after tax for the September quarter to Rs872 crore.

The company added that profits were still under pressure as a result of difficulties in collecting payments from one of its major clients, widely believed to be Vodafone Idea.

Consolidated revenue for the second quarter totalled Rs7,967 crore, an increase of 16% from the same time last year.

At Rs872 crore, the consolidated profit after tax was 44% lower than the corresponding period in the prior year. In Q2FY22, it had a net profit of Rs1,559 crore.

From 40.9% to 32.3% on an annual basis, the return on equity (pre-tax) decreased. The return on capital employed decreased from 23.8% to 19.2% year over year.

The company’s board of directors approved raising money through the issue of non-convertible debentures up to Rs2,000 crore in one or more tranches on a private placement basis at its meeting.

The business stated in a BSE filing that “the board has authorized a committee of directors to establish the detailed terms and conditions thereof and that the same will be disclosed to the stock exchanges in conformity with the requirements of the listing regulations as and when approved.”

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