24 Jan , 2025 By : Debdeep Gupta
Shares of telecommunications player Indus Tower gained two percent in the morning session on January 24, after its reporting better-than-expected earnings for the quarter that ended December (Q3) of the current financial year (FY25).
Indus Towers reported a consolidated net profit of Rs 4,003 crore for the quarter, marking a 159.9 percent increase from Rs 1,541 crore in the same quarter of the previous financial year on the back of significant collections of overdue from Vodafone Idea and robust tower additions.
The company saw its revenue from operations rise by 4.8 percent, reaching Rs 7,547 crore, up from Rs 7,199 crore in the corresponding quarter of the previous fiscal year.
At 9.30 am, shares of Indus Towers trimmed some gains to quote Rs 370 per share on the NSE, higher by around a percent.
For the quarter that ended Dec 31, 2024, Indus had an average sharing factor of 1.65 per tower. During the quarter, net lean colocation additions aggregated to 132. Lean colocations stood at 11,492.
“We are pleased to see our ability to maintain a dominant share of our major customers’ rollouts reap dividends in the form of robust tower and colocation additions, reiterating our superior execution capabilities and customer-centric approach,” Prachur Sah, managing director and CEO of Indus Towers said in a statement.
International brokerage Citi Research maintained its 'buy' rating on Indus Towers with a target price of Rs 485, citing strong Q3 performance driven by past dues, tenancy additions, and robust free cash flow (FCF). From the previous session's closing price of Rs 366.6 per share, this indicates a whopping 32 percent upside.
The company secured a dominant share of Vi’s rollouts, marking the start of meaningful tenancy growth. Citi Research expects the firm's FCF in Q4 to remain strong, with H2 FY25 potentially generating Rs 20 per share, which could be fully distributed as dividends.
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