Indus Towers Q4 Profit Declines, Full-Year Performance Hits New High

Mumbai: Telecom infrastructure company Indus Towers reported a 4 per cent fall in profit for the January-March quarter of FY25. Its net profit stood at Rs 1,779 crore, compared to Rs 1,853 crore in the same period last year. However, revenue during the quarter grew 7.4 per cent to Rs 7,721 crore from Rs 7,193 crore in Q4 FY24.

Operational Metrics Show Improvement

The company, a key player in India’s telecom infrastructure sector, reported a 7 per cent rise in EBITDA (earnings before interest, taxes, depreciation and amortisation) to Rs 4,395 crore. The EBITDA margin stood at a healthy 56.9 per cent. The return on capital employed (RoCE) improved to 29.1 per cent from 19.4 per cent a year ago.

Indus Towers’ Q4 results also reflected an accounting impact of Rs 183 crore due to its acquisition of passive infrastructure from parent company Bharti Airtel. The acquisition was treated as a common control transaction under Ind AS 103, leading to restatement of financials from November 19, 2024.

Full-Year Profit Jumps 64.5 per cent

For the full financial year ending March 2025, Indus Towers reported a 5.3 per cent rise in consolidated revenue to Rs 30,123 crore. Net profit for the year surged 64.5 per cent to Rs 9,932 crore. The company also wrote back Rs 226 crore from provisions for doubtful receivables, due to better collections from a major customer.

CEO Prachur Sah called FY25 “an excellent year,” citing strong tower additions, healthy cash flow, and recovery of dues. He said industry trends support continued growth, and Indus is ready to benefit from telecom expansion plans.

Committee to Review Shareholder Rewards

Last week, Indus Towers had announced that its board would consider shareholder reward options like a share buyback, dividend, or bonus issue. Following the April 30 board meeting, the company said a special committee will now study all these options in detail and make a final recommendation.

If approved, it could be the company’s first-ever bonus issue since listing. Indus Towers last bought back shares in 2024, its first buyback since 2016. The company has not paid a dividend since 2022.

Large Tower Portfolio and New Acquisitions

Indus Towers also announced the acquisition of telecom sites from Bharti Airtel and Bharti Hexacom for Rs 3,308.7 crore. The company now operates 249,305 towers across 22 telecom circles, making it one of the largest tower infrastructure providers in India.

(With PTI Inputs)