Indus Towers Reports 42% Profit Surge Amid Ownership Changes

Telecom infrastructure giant Indus Towers posted a notable 42% increase in consolidated profit for Q1 2024, driven by revenue growth and strategic ownership changes involving Vodafone Group and Bharti Airtel. Despite financial strides, the company is addressing overdue payments from debt-laden Vodafone Idea.

Telecom infrastructure giant Indus Towers has reported a substantial 42% increase in consolidated profit, reaching Rs 1,925.9 crore for the first quarter ending June 30, 2024.

The company had previously recorded a profit of Rs 1,347.9 crore during the same period last year, as stated in a regulatory filing. Indus Towers' consolidated revenue from operations grew by approximately 4% to Rs 7,439.4 crore in the reported quarter, up from Rs 7,132.4 crore in the June 2023 quarter.

Significantly, Vodafone Group Plc divested 17.98% of its stake in Indus Towers during the quarter, while Bharti Airtel Ltd acquired 27 million equity shares, representing a 1% equity share capital in the company. Bharti Airtel now holds 48.95% shares, and Vodafone Group holds a 3.06% stake as of June 30. Both companies continue as promoters of Indus Towers.

Without explicitly naming Vodafone Idea (VIL), Indus Towers disclosed that talks are ongoing about clearing VIL's old overdue balance. VIL has paid amounts largely equivalent to monthly billing since January 2023 and has settled Rs 1,300 crore against outstanding dues. However, VIL still owes Indus Towers around Rs 4,624 crore, which the latter continues to recognize in its revenue from operations but maintains an allowance for doubtful receivables.

(With inputs from agencies.)