Flat performance on a sequential basis for Indus towers | Indus Towers Q3FY22 Conference Call Highlights

• Total Tower base of 184,748, 0.7% QoQ and 5% up YoY with closing sharing factor of 1.81
• Consolidated Revenues at Rs. 6,927 Crore, up 3% Y-o-Y and 0.74% QoQ
• Consolidated EBITDA at Rs. 3,704 Crore, up 3% Y-o-Y and 1.74% QoQ. Operating margin of 53.5%.
• Consolidated Profit after tax at Rs. 1,571 Crore, up 16% Y-o-Y and 0.78% QoQ.
• Operating Free Cash Flows at Rs. 2,279 Crore, up 21% Y-o-Y and 8% QoQ
• Installed towers in inaccessible regions of Himachal Pradesh and Ladakh. It installed the towers in Ladakh as a part of Border area development program initiative of Government of India.
• According to the latest report by EUI, data consumption is the highest (14.5 GB) currently, and is expected to be 2.7 times the current data usage by FY25-26. This will fuel the growth of tower infrastructure.
• As per the Ericsson Mobility report, global 5G subscription grew to 98 million in Sep-21 to 84 Million in Jun-20.
• ROCE as at the period ended December 31, 2021 stands at 24.5%.
• The increase in sharing revenue per tower in Q3 was, in part, due to the non-recurring benefits arising from billing reconciliations, municipal taxes, etc., leading to ~1% increase qoq.
• Company is in discussions with the Vodafone to finalise the payment settlement. More colour on it will be provided in the subsequent quarters. Although company has sufficient security package in place.
• The energy spread margins were negative at -1.5% in Q3. Indus has been engaging with telcos to return to a fixed-cost model vs. the current pass-through model, which, it believes, will be a win-win for everyone. However, there has not been any major breakthrough in this regard, so far.

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Originally Published On: https://blog.investyadnya.in/indus-towers-q3fy22-conference-call-highlights/