Shares of this midcap telecom service provider company fell by 2.73 percent after the company reported 10 percent decline in revenue.
At 2:50, 26th october shares of Indus Towers Ltd were trading at Rs. 169.70 per share, down by 2.61 percent from previous closing price of Rs. 174.25 per share.
Such negative stock price movements were witnessed after the company announced results for Q2FY24 in which revenue declined by 10 percent to Rs. 7,133 crores in Q2FY24 from Rs. 7,967 crores in Q2FY23. Company’s operating cash flow declined by 69 percent to Rs. 398 crores from 1,277 crores in the same quarter of previous financial year.
On the other hand, the company reported profit after tax (PAT) growth of 49 percent to Rs. 1,295 crores in Q2FY24 from Rs. 872 crores in Q2FY23. The company also achieved a milestone of 200,000 macro towers in the second quarter ended september 30.
Looking at the profitability ratios, the company reported return on equity (ROE) of 9.44 percent and return on capital employed (ROCE) of 16.57 percent in the last financial year.
The company’s promoters possess roughly 69 percent of the shares, while Foreign Institutional Investors (FIIs) own 21.41 percent, and Domestic Institutional Investors (DIIs) have a 6.71 percent stake, leaving the remaining 2.88 percent in the hands of the general public.
Indus Towers Limited is in the business of setting up, operating and maintaining wireless communication towers. Company has a tower market share of 33 percent. Their customers are Bharti Airtel, Vodafone Idea, Reliance Jio and BSNL. In 2020, Bharti Infratel merged with Indus towers.
Written by: Vinit Israni
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