Indus Towers drops 3% after weak Q2 results
Indus Towers reported a 44 per cent fall in its consolidated net profit at Rs 872 crore for the September quarter.
- Oct 28, 2022,
- Updated Oct 28, 2022 9:49 AM IST
Shares of Indus Towers dropped 3 per cent in Friday’s trade after the company reported a weak set of quarterly results.
The company, which owns and manages telecom towers and communication structures for various mobile operators, reported a 44 per cent fall in its consolidated net profit at Rs 872 crore for the September quarter on a 16 per cent YoY rise in sales at Rs 7,967 crore. Ebitda was down 23 per cent YoY at Rs 2,812 crore.
In a press release, the telecom infrastructure company said its profit remained under pressure due to collection challenges from one of the major customers.
Following the development, the scrip fell 2.61 per cent to hit a low of Rs 186 on BSE.
"Indus Towers has liquidated investment worth Rs 1,370 crore in H1FY23 (out of Rs 1,650 crore in FY22) primarily to pay dividends. Cash and investments stood at Rs 310 crore – the lowest in the last three years," said Motilal Oswal Securities.
Reported consolidated Ebitda grew 24 per cent sequentially, but adjusting for a doubtful debt provision and a one-off item in revenue, the adjusted Ebitda grew only 2 per cent sequentially, the brokerage said while recommending a neutral rating on the stock.
Read More: Elon Musk fires Twitter CEO Parag Agrawal, other top executives: Report
Shares of Indus Towers dropped 3 per cent in Friday’s trade after the company reported a weak set of quarterly results.
The company, which owns and manages telecom towers and communication structures for various mobile operators, reported a 44 per cent fall in its consolidated net profit at Rs 872 crore for the September quarter on a 16 per cent YoY rise in sales at Rs 7,967 crore. Ebitda was down 23 per cent YoY at Rs 2,812 crore.
In a press release, the telecom infrastructure company said its profit remained under pressure due to collection challenges from one of the major customers.
Following the development, the scrip fell 2.61 per cent to hit a low of Rs 186 on BSE.
"Indus Towers has liquidated investment worth Rs 1,370 crore in H1FY23 (out of Rs 1,650 crore in FY22) primarily to pay dividends. Cash and investments stood at Rs 310 crore – the lowest in the last three years," said Motilal Oswal Securities.
Reported consolidated Ebitda grew 24 per cent sequentially, but adjusting for a doubtful debt provision and a one-off item in revenue, the adjusted Ebitda grew only 2 per cent sequentially, the brokerage said while recommending a neutral rating on the stock.
Read More: Elon Musk fires Twitter CEO Parag Agrawal, other top executives: Report