Indus Towers Q4 net profit down 23% to ₹1,399 crore

On a full-year basis, net profit declined 68 per cent for FY23, the company said, adding that “the financial performance reflects collection challenges from a key customer”.

Meanwhile, Indus Towers’ revenue for the March quarter (Q4FY23) stood at 6,753 crore, a decline of five per cent over Q4 FY22.

Consolidated earnings before interest, taxes, depreciation and amortization, or EBITDA, was measured at 3,447 crore, down 15 percent year-on-year and representing an operating margin of 51 percent.

“The Q4 2021-22 financials include a one-time positive impact of 547 crore on account of deferred recognition of revenue from past settlements. In 2022-23, the company follows prudent accounting practices and reflects stress on its receivables due to collection challenges faced by one of the key customers,” it said but did not name the telco.

For full FY2023, consolidated net profit declined by 68 per cent year-on-year 2,040 crores.

Company’s consolidated revenue increased by 2 percent year-on-year 28,382 crore for FY23.

Indus Towers Managing Director and CEO Prachur Sah said the company ended the year on a positive note with strong operational performance and improvement in collections during the last quarter.

“Renovation of co-locations with our key customers during the year has secured our business in the long run. In addition, the rapid pace of 5G rollout and new tower rollouts supported by our key customer’s focus on expansion have resulted in strong leverage It is expected to act as a form of development for the near future,” said Sah.

Sah expressed confidence that being the largest passive infrastructure company in the country, the company is “well positioned to drive this growth path in a sustainable manner”.

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