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Revenue
₹7,130 Cr
verified against source
Revenue YoY
-10.5%
reported change
EBITDA
₹3,460 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Indus Towers reported a mixed Q2 FY24. Revenue declined 10.5% YoY to INR 71.3 billion due to deferred revenue recognition in the base quarter, but adjusted revenue grew 3.5% YoY. EBITDA surged 22.9% YoY to INR 34.6 billion, with margins expanding 1320 bps to 48.5%, aided by lower provisions. PAT rose 48% YoY to INR 12.9 billion. Operational momentum was strong: record tower additions of 5,928, taking total towers to 204,212, and tenancy ratio improved to 1.73. Rural expansion by a major customer and 5G rollouts drove demand. However, elevated capex of INR 23 billion and a INR 8.8 billion receivable build-up pressured free cash flow to negative INR 10.33 billion. Management expects near-term rollout momentum to continue but flagged dependency on customer collections and past dues clearance. Key risk: sustained payment delays from a major customer could impact cash flows and dividend payout.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects similar or slightly higher tower additions in the next couple of quarters, with a healthy order book.
- Capex will stay high due to strong tenancy additions from major customer rollouts.
- Dividend distribution of 100% of free cash flow, subject to year-end assessment by the board.
Risks flagged
- Receivables increased by INR 8.8 billion due to delayed payment from a major customer, though subsequently cleared. Past dues remain unresolved.
- Clearance of past dues is dependent on the customer's fundraising plans, which are uncertain.
- A transaction with a customer led to deferred revenue recognition in Q2, impacting reported rental revenue. Resolution expected in Q3 but not guaranteed.
- Analyst noted that Airtel indicated rural expansion may largely be behind by end of calendar 2023, which could reduce tower addition demand.
Key quotes
- Driven by robust demand from one of our major customers, particularly in rural areas, our tower additions during Q2 were the highest ever.
- Our reported EBITDA increased by 22.9% year-on-year and declined by 1.6% quarter-on-quarter to INR 34.6 billion.
- We are in a very active engagement. As Prachur was saying, you know, we have received the payment subsequently, and those delays have been cleared now.
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