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As Per Latest Information Indus Towers reported a 23% decline in net profit due to Vodafone Idea dues.

Indus Towers provides Rs 43.4 crore towards doubtful debt, increasing to Rs 5,453.3 crore.

Indus Towers increased their reserve for bad debts by Rs 43.4 crore from January to March after Vodafone alerted Idea of probable difficulties in meeting upcoming payment obligations. This brings the overall bad debt allowance as of March 31 to Rs 5,453.3 crore.

HIGHLIGHTS

  • Indus Towers cited dubious dues from its biggest client, Vodafone Idea, as the reason for a 23% fall in its net earnings for the fiscal fourth quarter.
  • The tower firm made Rs 1,399 crore in profit during the January-March quarter as opposed to Rs 1,829 crore during the same time previous year.
  • Its quarterly sales was Rs 6,753 crore, a 5% decrease from the corresponding period in 2022.

Indus Towers, a provider of telecom infrastructure, cited disputed payments from its largest client, Vodafone Idea, as the reason for a 23% decline in net earnings for the fiscal fourth quarter. In comparison to Rs 1,829 crore during the same period last year, the tower company recorded a profit of Rs 1,399 crore during the January-March quarter. Sales for the quarter was Rs 6,753 crore, a 5% decline from the same period in 2022.

Indus Towers increased their reserve for bad debts by Rs 43.4 crore from January to March after Vodafone alerted Idea of probable difficulties in meeting upcoming payment obligations. This brings the overall bad debt allowance as of March 31 to Rs 5,453.3 crore. The company said that as of December 31, 2022, Telco was having problems servicing current debt and Vodafone Idea’s finance strategy had not been put into place.

Read More – Indus Towers: Airtel Now Owns a 47.95% Direct Stake

However, Indus Towers pointed out that from January 2023, Vodafone Idea has been paying a sum equal to monthly invoicing; as a result, the business would continue to record income from activities related to the aforementioned client for services provided. Industry insiders estimate that Vodafone Idea owes Indus Towers a total of roughly Rs 7,000 crore, with the cash-strapped telecom owing the tower operator recurrent monthly payments of more than Rs 500 crore.

Prachur Sah, CEO and Managing Director of Indus Towers, is optimistic about the future of the industry despite the challenges. He said: “The renovation of the facilities we share with our major customers throughout the year has secured our long-term business. Additionally, “we expect the construction of new towers and the rapid deployment of 5G networks, supported by our focus on expanding our core customer base, to be strong growth drivers for the foreseeable future.” »

Consolidated profits before interest, tax, depreciation, and amortization (EBITDA) for Indus Towers fell 15% year over year to Rs 3,447 crore as a result of Vodafone Idea’s continued financial woes. Shares of the business rose 3.62% to close trading on Wednesday at Rs 143. The financial numbers were released after market hours.

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Written by Shallu Srivastav

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