Indus Tower Q2 Results Review - Negatives Priced In; Attractive Valuation: Reliance Securities

Net revenue grew primarily on account of realisation of deferred revenue of past period, marginal increase in towers, co-locations

<div class="paragraphs"><p>A telecom tower (Photo: David Arrowsmith/Source: Unsplash)</p></div>
A telecom tower (Photo: David Arrowsmith/Source: Unsplash)

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Reliance Securities Report

Indus Towers Ltd.’s net revenue grew 16% YoY (up 16% QoQ) to Rs 79.7 billion (15.6% above our estimate of Rs 68.9 billion) primarily on account of realisation of deferred revenues (Rs 11 billion) of past period and marginal increase in towers and co-locations.

There was an increase in co-locations by 5,577 on YoY basis and 1,746 on QoQ basis. Revenue includes exit charges amounting to Rs 291 million versus Rs 287 million in Q1 FY23.

Indus Tower's reported rentals per month grew by 17% YoY (up 13% QoQ) to Rs 47,554 (excluding exit penalty), while adjusted rentals was flat QoQ at Rs 41,745.

The tenancy ratio stood at 1.80 times versus 1.80 times in Q1 FY23. On top line front company delivered decent performance.

However, on reported Ebitda front, performance was highly subdued as it was impacted by provisioning of Rs 17.7 billion on doubtful receivable from one of its major client.

Click on the attachment to read the full report:

Reliance Securities Indus Tower Q2 FY23 Result Update.pdf


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