Indus Towers (INDUSTOWER) Q2 24/25 earnings summary

Executive summary

• Achieved 100% collection on monthly billing from a major customer and improved collections on past overdues, supporting profitability and cash flow.

• Strong tower and tenancy additions despite severe weather disruptions, maintaining industry-leading uptime of 99.96%.

• 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.

• Strategic focus on market share, cost efficiency, network uptime, and sustainability, with notable progress in ESG initiatives.

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, 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) increased 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.

• Net profit margin improved to 29.78% (consolidated) and 29.77% (standalone) for the quarter.

Outlook and guidance

• Continued robust demand outlook, with ongoing 5G rollouts and network densification expected to drive growth.

• Demand for new sites and co-locations expected to remain strong, driven by 5G expansion and network densification.

• 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.

• Energy margins expected to recover in H2 as seasonal impacts subside and operational efficiencies improve.

• Anticipates continued momentum in both tower and tenancy growth, though FY24 rollout pace may not be repeated annually.