Indus Towers Limited has announced its audited consolidated results for the quarter ended June 30, 2022. The consolidated revenue for the quarter stood at Rs 68.97 billion, witnessing 1 per cent year-on-year (Y-o-Y) growth. Meanwhile, the consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) for the company was reported to be Rs 23.22 billion for the reported quarter, observing a decline of 34 per cent Y-o-Y and representing an operating margin of 33.7 per cent.
The net profit for the company during the reported quarter was Rs 4.77 billion, down by 66 per cent Y-o-Y. Besides, the operating free cash flow fell 60 per cent Y-o-Y to Rs 8.07 billion. The return on equity (pre-tax) dropped to 39 per cent as against 40.5 per cent on Y-o-Y basis while the return on equity (post tax) dropped to 29.5 per cent as against 30.4 per cent on Y-o-Y basis. Also, the return on capital employed for the company subsided to 22 per cent as against 22.9 per cent on Y-o-Y basis. As per the release, the impact to financial performance was on account of prudent accounting practice which reflects stress on receivables from one of the major customers of the company.
Commenting on the results, Bimal Dayal, managing director and chief executive officer, Indus Towers Limited, said, “The fundamentals of our business remain strong, and successful conclusion of the 5G auctions has further improved our outlook. As the leading tower infrastructure player in the country, Indus is well placed to enable timely and quality 5G rollout. We have reached an agreement over the renewal of co-locations with two of our major customers which augurs well for the Company by securing its business over the next decade. Our financial performance was an outcome of our prudent accounting practice as there is stress on our receivables due to the financial position of one of our major customers.”
