CapEx to remain elevated in FY24
Management expects robust demand for new towers from rural expansion and 5G to sustain through FY24 and possibly into Q1 FY25, keeping CapEx high.
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capex
Dividend policy subject to cash flow clarity
Dividend payout of 100% free cash flow is policy, but clarity on collections and customer funding is needed before board decision.
Energy losses expected to improve
Initiatives like solar, PNG, and aluminum-air batteries aim to reduce diesel consumption and narrow energy margin losses over time.
Sustained tower addition momentum
Management expects continued robust tower and co-location additions driven by network expansion and 5G rollouts from major customers.
Continued past due collections from Vodafone Idea
Collections against past dues expected to continue, with discussions ongoing for a payment plan and potential network expansion participation.
Cost efficiency through renewable energy and battery optimization
Target to reduce diesel consumption further via solar additions and more cost-efficient batteries with longer longevity.
Tower additions to remain robust in FY26
Management expects strong tower additions for the full year based on current order book visibility across all customers.
Board to reassess cash distribution by end of FY26
The board will review the decision to conserve cash and consider reinstating distributions by the end of the financial year.
Energy margin improvement expected
Management aims to improve energy margins through solar deployment, lithium-ion batteries, and smart meters, though no specific target given.
Near-term rollout momentum to continue
Management expects similar or slightly higher tower additions in the next couple of quarters, with a healthy order book.
Capex to remain elevated
Capex will stay high due to strong tenancy additions from major customer rollouts.
Dividend policy linked to free cash flow
Dividend distribution of 100% of free cash flow, subject to year-end assessment by the board.
Continued tower and tenancy growth momentum
Management expects both tower additions and co-location growth to continue in the coming quarters, driven by major customer rollouts.
Energy margin recovery in H2
Energy margins, impacted by monsoon seasonality in Q1 and Q2, are expected to improve in Q3 and Q4.
Dividend policy linked to free cash flow
The company will evaluate dividend distribution at year-end in line with its policy of distributing free cash flow.
Strong tower additions expected in India for next 3-4 quarters
Management indicated a robust order book and expects to maintain or improve the momentum of tower additions seen in Q2.
Africa foray to begin within 3-6 months
Initial organic expansion in Nigeria, Uganda, and Zambia with anchor customer; CapEx funded through leverage.
Shareholder distribution committed by Q4 FY26
Board will consider cash distribution to shareholders by end of financial year, subject to clarity on Vodafone Idea AGR.
Rural expansion to continue in near term
Management expects the major customer's rural rollout to sustain for the next 2-3 quarters, supporting tower additions.
5G loading revenue upside of 5-10%
Loading revenue from 5G equipment on existing towers is expected to contribute 5-10% upside per site.
Dividend policy linked to free cash flow
Dividend payout will be evaluated at year-end based on free cash flow, with no change in policy.
Order book visibility for 3-4 quarters
Management expects robust growth for the next 3-4 quarters based on strong order book from all customers.
Continued network expansion by major customers
Ongoing network expansion by customers, including Vodafone Idea, is expected to drive tower and co-location additions.
Improvement in energy margins
Energy margins expected to improve as renewable energy share increases and diesel consumption reduces.
Dividend distribution to be considered at Q4 FY26 board meeting
Board will evaluate dividend payout at the time of annual results, with commitment to shareholder distribution.
Africa expansion to be organic and debt-funded initially
Africa foray will be greenfield, with initial capital likely debt-funded at UAE or GIFT City level; no near-term impact on India cash flows.
CapEx to remain elevated for 2-3 years before easing
Growth CapEx driven by customer orders will sustain for next 2-3 years, then moderate as tower rollout slows.
Elevated CapEx to continue for next few quarters
Management expects high CapEx phase to persist for several more quarters due to strong rollout momentum from major customer.
Rural expansion and 5G rollouts to drive near-term growth
Rural rollouts by major customer and ongoing 5G deployments are expected to continue as key growth levers.
Dividend consideration subject to cash flow improvement
Dividend will be considered if cash flow situation improves in FY25, depending on overdue clearance and CapEx levels.
Strong tower and tenancy growth expected in FY26
Management expects FY26 to be another strong year of growth, with a robust order book and continued customer rollout activity.
Capital distribution committee formed
Board formed a subcommittee to assess modalities of cash distribution to shareholders; decision expected in the near term.
Continued focus on cost efficiency and renewable energy
Target to further reduce diesel consumption through solar deployment (30,000 solar sites) and lithium-ion battery adoption.
Africa rollout to begin soon in Zambia
Zambia operating license secured; first tower deployment expected within six months. Uganda and Nigeria in final regulatory stages.
Dividend policy: distribute free cash flow annually
Board committed to steady and progressive distribution of free cash flow, subject to working capital and investment needs.
CapEx to remain growth-oriented with healthy order book
70% of CapEx is growth-oriented; order book remains strong despite supply chain disruptions from geopolitical tensions.