Indus Towers (INDUSTOWER) Q1 24/25 earnings summary

Executive summary

• Delivered robust operational and financial performance in Q1 FY25, with consolidated revenue from operations rising to Rs. 73,830 million, up from Rs. 70,759 million year-over-year.

• Net profit after tax for the quarter was Rs. 19,259 million, a 42.9% increase year-over-year.

• Strong tower and co-location additions driven by high demand from major customers and sustained market share.

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

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

Financial highlights

• Gross revenues rose 4.3% year-on-year to INR 73.8 billion; core rental revenues 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% year-over-year.

• Profit after tax up 42.9% year-on-year and 3.9% quarter-on-quarter to INR 19.3 billion.

• Free cash flow of INR 18.7 billion generated in Q1, aided by higher collections and lower CapEx.

Outlook and guidance

• Expect continued network expansion and 5G rollouts by major customers to drive growth in towers and co-locations.

• Sustained collection of past dues anticipated 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 at the customer.

• Confident in ability to capitalize on sector growth opportunities while maintaining sustainability commitments.