Indus Towers Q1 results 2024

Indus Towers Q1 Results Revealed: Major Share Buyback and Stunning Financial Highlights

Indus Towers recently announced its financial results for the June quarter, showcasing strong growth and strategic initiatives. Let’s dive into the details and understand what these results mean for investors and the company’s future.

Revenue and EBITDA Growth

For the June quarter, Indus Towers reported a consolidated revenue of Rs 7,383 crore, marking a 4.3% year-over-year (YoY) increase. This growth is a positive indicator of the company’s robust operational performance. The consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a significant rise of 29.4% YoY, reaching Rs 4,545 crore. The EBITDA margin for the quarter was an impressive 61.6%.

Share Buyback Announcement

Indus Towers’ shares have been in the spotlight after the board approved a proposal to buy back up to 56,774,193 fully paid equity shares. These shares, each having a face value of Rs 10, will be bought back at a price of Rs 465 per share through a tender offer route. The total amount allocated for this buyback does not exceed Rs 2,640 crore. Notably, the buyback price is at a 4% premium over the previous closing price of Rs 447.05.

Net Profit and Financial Performance

The company reported a consolidated net profit of Rs 1,926 crore for the June quarter, reflecting a 42.9% YoY increase. This profit includes a write-back of Rs 760 crore in provisions for doubtful receivables, aided by successful collections against past overdue amounts.

Return on Equity and Capital Employed

Indus Towers highlighted improvements in key financial metrics. The return on equity (pre-tax) increased to 34.7% from 18.7% YoY, while the return on equity (post-tax) rose to 25.7% from 13.8% YoY. Additionally, the return on capital employed improved to 20.9% from 13.8% on a YoY basis.

Insights from the CEO

Prachur Sah, Managing Director and CEO of Indus Towers, commented on the company’s performance, stating, “Another quarter of robust tower additions reaffirms our competitive strength in the passive infrastructure space. Business growth along with continued collection of past dues underpinned our strong financial performance. We expect network expansion and 5G deployments by our customers to continue to act as growth levers. We are confident of building on these opportunities to create value for our shareholders in a sustainable manner.”

Conclusion

Indus Towers’ Q1 results reflect its strong financial health and strategic direction. The significant revenue and profit growth, coupled with the share buyback initiative, indicate the company’s commitment to enhancing shareholder value. As the company continues to expand its network and leverage 5G deployments, investors can look forward to sustained growth and profitability.

FAQs:

1. What was the revenue growth for Indus Towers in Q1?

A. Indus Towers reported a 4.3% year-over-year increase in consolidated revenue for the June quarter, totaling Rs 7,383 crore.

2. How much did Indus Towers’ EBITDA grow in the June quarter?

A. The company’s consolidated EBITDA rose by 29.4% year-over-year, reaching Rs 4,545 crore.

3. What is the significance of the share buyback announcement?

A. The share buyback plan involves repurchasing up to 56,774,193 fully paid equity shares at Rs 465 per share, demonstrating the company’s effort to enhance shareholder value.

4. What was the net profit for Indus Towers in Q1?

A. Indus Towers reported a consolidated net profit of Rs 1,926 crore for the June quarter, a 42.9% year-over-year increase.

5. How did the return on equity change in Q1?

A. The pre-tax return on equity increased to 34.7% from 18.7% year-over-year, while the post-tax return on equity rose to 25.7% from 13.8%.

6. What comments did the CEO make about the company’s performance?

A. Prachur Sah, Managing Director and CEO, highlighted the company’s robust tower additions, business growth, and ongoing collection of past dues as key factors in their strong financial performance.

7. How is the company planning to leverage 5G deployments?

A. Indus Towers expects network expansion and 5G deployments by their customers to act as growth levers, contributing to future growth and profitability.

8. What is the total amount allocated for the share buyback?

A. The total amount allocated for the share buyback does not exceed Rs 2,640 crore.

9. How did the return on capital employed change in Q1?

A. The return on capital employed improved to 20.9% from 13.8% year-over-year.

10. What factors contributed to the net profit increase?

A. The net profit increase was aided by a write-back of Rs 760 crore in provisions for doubtful receivables, supported by successful collections against past overdue amounts.