In Wednesday’s trading session, the shares of India’s leading provider of passive telecom infrastructure slumped by 3.7 percent to hit a low at Rs. 430.5, after the company’s Board approved share buyback as well as Q1 FY24-25 results.
At 12:06 p.m., the shares of Indus Towers Limited were trading in the red at Rs. 433.6, down by 3 percent, compared to its previous closing price of Rs. 447.05, with a market cap of Rs. 1.16 lakh crores.
What’s the News:
The company announced the financial results for Q1 FY24-25, through the recent filings with the stock exchanges on Tuesday post-market hours.
The consolidated revenue from operations for Q1 FY24-25 stood at Rs. 7,383 crores, marking a 4.3 percent YoY rise from Rs. 7,076 crore in Q1 FY23-24, as well as a 2.6 percent growth quarter-on-quarter from Rs. 7,193.2 crore in Q4 FY23-24.
The net profit jumped by 43 percent YoY to Rs. 1,926 crore in Q1 FY24-25, as against Rs. 1,348 crore in Q1 FY23-24, and on a quarter-on-quarter basis, it grew by 4 percent from Rs. 1,853 crore in Q4 FY23-24.
In Q1 FY24-25, the consolidated EBITDA for the quarter stood at Rs. 4,545 crores, up by 29.4 percent YoY, as compared to Rs. 3,514 crore in Q1 FY23-24.
Moreover, the Return on Capital Employed (RoCE) improved to 20.9 percent as against 13.8 percent on a YoY basis.
Further, the Board of Indus Towers approved a buyback of up to 5.67 crore equity shares, representing nearly 2.1 percent of the total number of equity shares of the company.
The buyback will be done at a price of Rs. 465 per share, on a proportionate basis, for an aggregate amount not exceeding Rs. 2,640 crore.
Stock Performance
The shares of Indus Towers have delivered multibagger returns of nearly 151.6 percent in one year, as well as around 113.4 percent returns year-to-date.
About the company:
Indus Towers Limited is a telecommunications tower infrastructure service provider, and it deploys, owns, operates and manages telecom towers and communication structures, for various mobile operators.
Indus Towers Limited was formed by the merger of Bharti Infratel Limited and Indus Towers, and this merger created one of the largest telecom tower companies in the world.
The company’s leading customers are Bharti Airtel (together with Bharti Hexacom), Vodafone Idea Limited and Reliance Jio Infocomm Limited.
Written by Shivani Singh
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