Indus Towers Reports Q2 2023 Results: Steady Performance Amid Market Challenges

Indus Towers, a leading telecommunications infrastructure company, has released its financial results for the second quarter ended September 30, 2023.
Crown Castle telecom towersDespite facing challenges in the market, the company demonstrated resilience and achieved significant milestones.

Revenue Decline but Improved Profitability: Indus Towers reported a total revenue of Rs 7,133 crore for the second quarter of 2023, marking a 10 percent year-on-year (Y-o-Y) decrease. This dip in revenue was attributed to various market factors. However, the company showcased improved profitability with an EBITDA of Rs 3,456 crore, representing a notable 23 percent increase. This impressive EBITDA resulted in an operating margin of 48.5 percent. The net profit for the quarter surged to Rs 1,295 crore, indicating a remarkable 49 percent growth.

Financial Metrics: Despite the revenue decline, Indus Towers exhibited sound financial metrics. The Return on Equity (Pre-Tax) dropped to 20.4 percent compared to 32.3 percent, and the Return on Equity (Post Tax) decreased to 15.1 percent from 24.2 percent. The Return on Capital Employed also saw a dip, down to 14.0 percent from 19.2 percent. These metrics reflect the dynamic nature of the telecommunications industry and the evolving market conditions.

Impact of Deferred Recognition and Provision for Doubtful Debt: The second quarter of FY23 witnessed a significant benefit of Rs 1,076 crore from the deferred recognition of revenues arising from the settlement of old dues with customers. On the flip side, the same quarter incurred an impact of Rs 1,771 crore due to the provision for doubtful debt. These financial events played a substantial role in shaping the quarterly results.

Indus Towers Achieves a Milestone: Prachur Sah, Managing Director and CEO of Indus Towers, expressed his thoughts on the company’s performance. He mentioned, “The quarter marked Indus Towers reaching a milestone of 200,000 macro towers, reaffirming its leadership position. We are also proud to have delivered another quarter of our highest tower additions, which translated into a steady financial performance.”