Indus Tower Shares in Focus: Announced Strong Q2 FY25 Results

Indus Towers Limited, a leading provider of tower infrastructure in India, reported strong financial results for the second quarter ended September 30, 2024. Consolidated revenue for the quarter reached ₹7,465 Crores, up 4.7% year-over-year (YoY). Consolidated EBITDA climbed to ₹4,907 Crores, a substantial increase of 42.0% YoY, resulting in an impressive EBITDA margin of 65.7%. Net profit for the quarter soared to ₹2,224 Crores, up 71.7% YoY. 

The Company’s Return on Equity (Pre-Tax) improved significantly to 38.9% from 20.4% in the previous year, and Return on Capital Employed increased to 22.9% from 14.0%. The strong financial performance was driven by a write-back of ₹1,077 Crores in provision for doubtful receivables, aided by improved collections against past overdue amounts.

Prachur Sah, Managing Director and CEO of Indus Towers Limited said: “Our operational performance reflects sustained demand for network expansion and our endeavour towards securing a larger share of our customers’ rollouts. This continues to drive our financial performance, aided by a steady collection of past overdue from a major customer. Given a healthy cash generation, we rewarded our shareholders through buyback during the quarter. 

He further added, “We expect the performance to continue in the wake of network expansion plans of our customers over the near to medium term. Guided by our strategic priorities and inherent capabilities, we remain confident of capitalizing on these opportunities and generating value for all our stakeholders.”

On October 23, 2024, Indus Tower shares opened at ₹381.15 and touched the day high of ₹381.15 at 09:30 AM. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.