Indus Towers (INDUSTOWER) Q2 24/25 earnings summary

Executive summary

• Achieved robust financial and operational performance in Q2 FY25, with strong tower and tenancy additions despite severe weather disruptions across multiple regions.

• Maintained 100% collection against monthly billing from a major customer and improved collections of past overdues, supporting profitability.

• Consolidated and standalone financial results for the quarter and half year ended September 30, 2024, have been audited and present a true and fair view in accordance with Ind AS 34 and SEBI regulations.

• Statutory auditors expressed an unmodified opinion on both consolidated and standalone results.

• Continued focus on four strategic pillars: market share, cost efficiency, network uptime, and sustainability, with notable progress in each area.

Financial highlights

• Q2 FY25 revenue reached INR 74.7 billion, up 4.7% year-on-year; core rental revenue grew 8.5% year-on-year to INR 47.1 billion.

• Profit after tax for the quarter was INR 22.2 billion (consolidated), up 71.8% year-on-year; adjusted PAT up 13.8% year-on-year.

• Reported EBITDA rose 42% year-on-year to INR 49.1 billion, with margins at 65.7%; adjusted EBITDA (excluding INR 10.8 billion provision writeback) up 6.9% year-on-year.

• Basic and diluted EPS for the quarter stood at Rs. 8.30, up from Rs. 4.81 year-over-year.

• Free cash flow for Q2 was INR 14.4 billion, aided by higher collections and lower CapEx.

Outlook and guidance

• Demand outlook remains strong for the next few quarters, with continued momentum expected in tower and tenancy additions.

• Anticipates incremental tenancies from major customers and expects 5G rollouts and network expansion to drive growth.

• Expects energy margins to recover in H2 as seasonal impacts subside and operational efficiencies improve.

• Management continues to monitor a large customer’s financial health, expecting to realize receivables and assets related to this customer, supported by recent capital infusions and ongoing payments.