Indus Towers slips after Q1 PAT slides 66% YoY

3 Aug 2022 , 11:48 AM

Consolidated profit before tax declined 65.7% to Rs 643.10 crore in Q1 FY23 from Rs 1,877 crore posted in Q1 FY22.Total expenses rose 40% year on year to Rs 4,575 crore in the quarter ended 30 June 2022. EBITDA was at Rs 2,322 crore, down 34% YoY with an operating margin of 33.7%. The total tower base grew 3.03% to 1,86,474 as on 30 June 2022 as compared to 1,80,99 as on 30 June 2021. The closing sharing factor was at 1.80 during the quarter, same as that of corresponding quarter last year. The operating free cash flow stood at Rs 807 crore down 60% YoY in quarter ended June 2022. The return on equity (pre-tax) dropped to 39% in Q1 FY23 as against 40.5% in Q1 FY22 on YoY basis [return on equity (post tax) slipped to 29.5% as against 30.4% YoY basis. The return on capital employed skid to 22% in Q1 FY23 as against 22.9%, during the period under review. The company said that the impact to financial performance was on account of prudent accounting practice which reflected stress on receivables from one of the major customers of the company. Bimal Dayal, managing director and chief executive officer of Indus Towers (formerly Bharti Infratel), said, ?The fundamentals of our business remain strong, and successful conclusion of the 5G auctions has further improved our outlook. As the leading tower infrastructure player in the country, Indus is well placed to enable timely and quality 5G rollout. We have reached an agreement over the renewal of co-locations with two of our major customers which augurs well for the company by securing its business over the next decade. Our financial performance was an outcome of our prudent accounting practice as there is stress on our receivables due to the financial position of one of our major customers.? Indus Towers (formerly Bharti Infratel) is Indias leading provider of passive telecom infrastructure and it deploys, owns and manages telecom towers and communication structures, for various mobile operators.Powered by Capital Market – Live News