Indus Towers has reportedly made a provision of Rs 17.71 billion towards doubtful debt in the second quarter of the fiscal year 2022, a sharp quarter-on-quarter (QoQ) rise of 43 per cent, as it is yet to receive payment from a key customer, which is understood to be Vodafone Idea Limited (Vi). The company has agreed to the customer’s proposal for softer payment terms.
In its financial statements for Q2 2022, Indus Towers also warned that the potential loss of that significant customer if it fails to continue as a going concern or Indus’s failure to get new clients could have an adverse effect on the company’s business.
According to the company, during the last quarter, the customer had informed the company that a funding plan was under finalisation with its lenders and had proposed a payment plan to the company to pay part of the monthly billing till December 2022 and 100 per cent of the amounts billed from January 2023. Indus Towers added that it has agreed to the part payment proposal. Under the proposal, Vi will pay its dues outstanding as of December 31, 2022, between January 2023 and July 2023, and 100 per cent of its dues from January 2023 onwards.