Indus Towers (INDUSTOWER) Q4 12/13 earnings summary

Executive summary

• FY13 delivered consolidated revenue growth of 8.7% and EBITDA growth of 8.5%; PAT rose 33.8% to ₹10,025 Mn despite subdued operator rollouts.

• Network sharing expanded, with 6,700 net co-location additions and a 1.91x sharing factor at March 31, 2013.

• December 2012 IPO raised ₹32,303 Mn from fresh shares; shares listed on NSE and BSE.

Financial highlights

• Consolidated FY13 revenue, excluding other income, was ₹102,720 Mn versus ₹94,521 Mn in FY12; YoY growth was 8.7%.

• EBITDA, excluding other income, was ₹38,354 Mn versus ₹35,344 Mn; YoY growth was 8.5%.

• Consolidated PAT was ₹10,025 Mn versus ₹7,491 Mn; YoY growth was 33.8%.

• EBIT reached ₹16,103 Mn, up from ₹13,905 Mn; operating cash profit was ₹32,287 Mn.

• FY13 diluted EPS was ₹5.61 versus ₹4.29 in FY12; figures reflect the bonus share adjustment.

Outlook and guidance

• Demand outlook rests on 3G/4G expansion, data growth, rural network buildout and rising need for tower density; no numerical FY14 guidance was stated.

• Operators reported 25% QoQ data-traffic growth over the prior year; accelerated rollouts were expected as regulatory clarity improved.

• Potential new revenue streams include in-building solutions, optical-fibre or microwave backhaul and active-infrastructure maintenance, subject to regulatory changes.