One of the telecom operators stocks is engaged in the business of setting up, operating and maintaining wireless communication towers. It has jumped by 3.94% at opening bell, which is after reporting rise in 72% of net profit in Q2 FY24 results
Stock Movement:
With a market capitalization of Rs. 95,804.88 crore, the shares of Indus Towers Limited were opened at Rs. 381.15 per equity share, rising nearly around 3.94 percent from its previous day’s close price of Rs. 366.70. The stock is currently trading at Rs 364 per equity share.
Q2 FY25 Result Walkthrough
Indus Towers Limited’s consolidated revenue from operations has increased by 4.67 percent YOY, from Rs. 7,132.5 crore in Q2 FY24 to Rs. 7,465.3 crore in Q2 FY25, and grown by 1.11 percent QoQ from Rs. 7,383 crore in Q1 FY25.
The company’s consolidated net profit has increased by 71.73 percent, from Rs. 1,294.7 crore in Q2 FY24 to Rs. 2,223.5 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has fallen by 15.45 percent QoQ from Rs. 1,925.9 crore.
Indus Towers Limited’s earnings per share has increased by 72.56 percent, from Rs. 4.81 in Q2 FY24 to Rs. 8.30 in Q2 FY25. As compared to the previous quarter, it has increased from Rs. 7.15.
In terms of return ratios, the company’s ROCE and ROE should be 8.59% and 8.40%, respectively. The debt-to-equity ratio of the company is to be 1.52
Indus Towers Limited’s net profit margin has improved from 18.15% in Q2 FY24 to 27.78% in Q2 FY25. The operating profit margin has also increased from 27.06% to 44.57% YOY in Q2 FY25.
Indus Tower Ownership Shift
On June 19, 2024, Vodafone Group’s sale of an 18% stake in Indus Towers for approximately ₹15,300 crore is aimed at reducing Vodafone’s substantial debt of $42.17 billion. Additionally, with Bharti Airtel currently increasing its stake to nearly 50%, potential synergies could emerge, impacting Indus Towers’ strategic direction and operational dynamics moving forward.
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Indus-Vodafone Revenue Status
Indus Towers continues to face financial uncertainty despite receiving monthly billing payments from Vodafone Idea since January 2023 and clearing Rs 2,328 crore in outstanding dues, including Rs 1,028 crore for September 2024. Indus Towers still faces
significant doubtful receivables of Rs 3,548 crore. This amount, though lower than March 2024’s Rs 5,386 crore, continues to pose financial uncertainty.
About the company:
Indus Towers Limited leads India’s telecom infrastructure sector by providing comprehensive tower and communication structure solutions. The company deploys and manages over 229,658 towers with 379,236 co-locations nationwide. Indus Towers offers various services, including tower infrastructure, power management, smart cities, and green technology solutions. The company installs passive infrastructure to support customers’ base stations and transmission equipment.
The company utilizes both grid electricity and diesel generators to power its diverse tower portfolio. Indus Towers maintains different tower types, from traditional lattice structures to modern camouflaged designs. They lease space from property owners for infrastructure placement. Major telecom operators like Bharti Airtel, Vodafone India, and Idea Cellular rely on their services.
Written By – Nikhil Naik
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