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Indus Towers, a leading provider of telecom tower infrastructure in India, has announced robust financial results for the first quarter of fiscal year 2025 (Q1FY25), showcasing strong growth and a commitment to shareholder value. The company reported a consolidated net profit of Rs 1,926 crore, representing a significant year-on-year (YoY) increase of 42.9%. This impressive performance was driven by a write-back of Rs 760 crore in provision for doubtful receivables, a testament to the company's effective collection strategies for past dues.
In addition to its strong earnings, Indus Towers announced a buyback of up to 56,774,193 fully paid-up equity shares at a price of Rs 465 per share, for a total aggregate amount not exceeding Rs 2,640 crore. This buyback, conducted through a tender offer route, reflects the company's confidence in its future prospects and its commitment to maximizing shareholder returns. The buyback price represents a 4% premium over the closing price of Rs 447.05 on Tuesday, further highlighting the company's positive outlook.
Indus Towers' financial performance extended beyond its profit figures. Consolidated revenue for the quarter reached Rs 7,383 crore, marking a 4.3% YoY growth. The company's Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged 29.4% YoY to Rs 4,545 crore, with an Ebitda margin of 61.6%. These results underscore the company's ability to effectively manage costs and generate strong cash flow.
The company's financial health is further evidenced by its improved profitability metrics. Indus Towers' return on equity (pre-tax) climbed to 34.7% from 18.7% YoY, while its post-tax ROE reached 25.7% compared to 13.8% in the previous year. The return on capital employed also saw a significant improvement, rising to 20.9% from 13.8% YoY. These figures demonstrate the company's efficient utilization of its resources and its commitment to delivering strong returns to its investors.
Prachur Sah, Managing Director and CEO of Indus Towers, expressed his satisfaction with the company's performance, highlighting the continued growth in tower additions, which underlines the company's competitive strength in the passive infrastructure space. He attributed the strong financial performance to a combination of business growth and the collection of past dues. Sah emphasized the ongoing network expansion and 5G deployments by the company's customers as key drivers of future growth. He expressed confidence in the company's ability to leverage these opportunities to create sustainable value for shareholders.
Source: Indus Towers shares Q1 results, announces Rs 2,640 crore buyback; key details