Indus Towers, a telecommunications infrastructure company in India, has reported revenue of Rs 7,076 crore, representing a 3 percent increase, for the first quarter ended June 30, 2023, showcasing a robust financial performance.
The EBITDA reached Rs 3,514 crore, indicating an impressive 51 percent growth and operating margin of 49.7 percent. Notably, the net profit for the quarter amounted to Rs 1,348 crore, reflecting a significant surge of 182 percent.
Despite the company’s impressive financials, the operating free cash flow witnessed a slight decline, reaching Rs 535 Crores, down 34 percent. The Return on Equity (Pre-Tax) dropped to 18.7 percent compared to 39 percent. Additionally, the Return on Equity (Post Tax) decreased to 13.8 percent as opposed to 29.5 percent. Similarly, the Return on Capital Employed saw a dip, reaching 13.8 percent compared to 22 percent. These financial metrics were affected by a provision for doubtful debt of Rs 1,233 crore during the first quarter of FY23.
Prachur Sah, Managing Director, and CEO of Indus Towers, expressed satisfaction with the company’s solid operational performance in Q1 FY24. Notably, this quarter marked the highest quarterly tower additions in the company’s history. Indus Towers said the number of telecom towers reached 198,284 (192,874 in March 2023) with closing sharing factor of 1.75 at the end of June 2023. Steady collections played a crucial role in contributing to the company’s strong financial performance.
Prachur Sah emphasized the progress made on key strategic priorities that are vital for the company’s growth, competitiveness, and customer satisfaction. With the anticipated 5G rollouts by operators and significant network expansion by a major customer, Indus Towers is actively keeping pace to capitalize on the growth opportunity and create long-term value.
Indus Towers’ financial achievements during Q1 FY24 demonstrate its resilience and adaptability in the dynamic telecommunications industry. As the company continues to focus on its strategic goals and invest in future technologies, it is poised to further strengthen its market position and contribute to the growth of India’s telecommunications infrastructure sector.
