Received 'significant part' of Q4 dues from Vodafone Idea: Indus Towers

Indus Towers said on Thursday it received a “significant part” of the instalment-based payments from Vodafone Idea (Vi) for the January-March period, the company’s senior management said in a post-results investor call. It stressed that it received no new proposal for an updated payment plan from Vi, and that the company would keep its eyes on previous dues. It acknowledged that the situation remains dynamic.

A day earlier, the tower company had reported a 23 per cent decline in consolidated net profit in fourth quarter of FY2023 on account of a drop in revenue and provision on account of doubtful receivables.

Net profit in the fourth quarter of FY23 stood at Rs 1,399 crore compared to Rs 1,829 crore in the same period last year. Revenues fell 5 per cent on a year-on-year basis to Rs 6,753 crore as the tower company continues to face challenges in recovering dues from Vi.

Indus Towers has said cash-strapped Vi had been paying an amount equivalent to monthly billing from January 2023, hence, the group continues to recognise revenue from operations relating to the said customer for the services rendered.

Vi had submitted a payment plan approved by the tower company’s board in October 2022. Indus Towers agreed to the telco’s proposal of substantially paying its billed amount till December. Vi had agreed to pay 100 per cent of the billed amount and outstanding amounts between January and July 2023.

With regards to the company’s overall financial position, Indus Towers said it had ended FY23 on a positive note. The company will also continue to prioritise extensive working capital expenditure for tower installation over dividend payouts at the moment.

Indus Towers is India’s leading provider of passive telecom infrastructure and deploys, owns and manages 192,000 telecom towers and communication structures for various mobile operators. Company executives said new 3,482 towers and 3,396 co-locations were added over the latest quarter.