Weak signals from Indus Towers on renewal, tenancy ratio concerns

Need for additional towers in question as operators recently added spectrum

Led by higher tower additions and lower costs, Indus Towers March quarter financials were marginally ahead of analyst expectations. Gross tenancy additions were up 10 per cent sequentially to 5,024, the highest in over three years. The additions and growth are likely on the back of Bharti Airtel’s continued network rollout driven by the need for both coverage and capacity requirements, says Sanjesh Jain of ICICI Securities in a post result report.

Though operating profit was down sequentially by 4 per cent, this was in line with estimates. As compared to the year ago quarter, this is up 20 per