Indus Towers Q2 Results: Profit slumps 44% YoY to Rs 872 crore; collection challenges from major customer hits performance

The consolidated profit after tax at Rs 872 crore was down 44 per cent from the year-ago period. Its net profit was at Rs 1,559 crore in Q2FY22.

The return on equity (pre-tax) dropped to 32.3 per cent as against 40.9 per cent on year-on-year basis. The return on capital employed dropped to 19.2 per cent as against 23.8 per cent year-on-year.

Indus Towers, in a statement, said that the financial performance continued to be impacted by the collection challenges from one of the major customers of the company.

It, however, did not name the operator, widely believed to be debt-ridden

.

N Kumar, Chairman and Independent Director, Indus Towers Limited, said: “We have delivered a strong operational performance during the quarter, underpinned by good demand for products across our portfolio.”

“Launch of 5G services by two major operators within three months of spectrum auction underlines the strong role of infrastructure players in providing 5G-ready sites at speed. At Indus Towers, we stay excited and prepared to capitalise on the 5G opportunity,” Kumar said.

The board of directors of the company in its meeting also approved raising of funds through issuance of Non-Convertible Debentures of up to Rs 2,000 crore in one or more tranches on private placement basis.

“In this regard, the board has authorised a committee of directors to determine the detailed terms and conditions thereof and the same will be informed to the stock exchanges in compliance with the requirements of the listing regulations as and when approved,” the company said in a BSE filing.