Indus Towers (INDUSTOWER) Q1 24/25 earnings summary

Executive summary

• Robust operational and financial performance in Q1 FY25, with consolidated revenue at Rs. 73,830 million, driven by strong tower and co-location additions and major customer demand.

• Net profit after tax for the quarter was Rs. 19,259 million, up 42.9% year-on-year and 3.9% quarter-on-quarter.

• Collections against past dues from a major customer improved for the third consecutive quarter, with 100% collection of monthly dues.

• Vodafone PLC sold its 18% stake; Vodafone Idea raised equity and plans debt, supporting confidence in future collections and network expansion.

• Board-approved buyback of up to 56.77 million shares at Rs. 465 per share, totaling up to Rs. 26,400 million, reflects management's confidence in fundamentals and future outlook.

Financial highlights

• Gross revenue rose 4.3% year-on-year to INR 73.8 billion; core rental revenue up 7% year-on-year to INR 46.4 billion.

• Reported EBITDA increased 29.4% year-on-year and 10.8% quarter-on-quarter to INR 45.5 billion; EBITDA margin at 61.6%.

• Operating profit margin for the quarter was 40.43%, up from 30.24% last year; net profit margin improved to 26.09%.

• Basic and diluted EPS for the quarter were Rs. 7.15, compared to Rs. 5.00 in the prior year quarter.

• Free cash flow of INR 18.7 billion generated in Q1; trade receivables decreased by INR 7.3 billion.

Outlook and guidance

• Anticipates continued network expansion and 5G rollouts by major customers, supporting growth in towers and co-locations.

• Sustained collection of past dues expected to further improve cash flow.

• The company continues to monitor the financial health of a major customer, with expectations to realize receivables and assets related to this customer, supported by recent capital infusions.

• Dividend policy remains linked to free cash flow; future dividends or buybacks possible as cash flow improves.