Indus Towers Q4FY23 reports 23.5% lower profits due to problems at client Vodafone Idea
Indus Towers reported -5.1% lower total revenues for the March 2023 quarter on consolidated basis at Rs6,753cr. The revenues were marginally lower on a sequential basis. The provisions made against the receivables from Vodafone India had been largely responsible for the lower profits.
However, here it must be noted that bulk of the provisioning was already done in the December 2022 quarter wherein Rs2,270 crore had been written off against Vodafone Idea receivables. For FY23 overall, the company made a provision of Rs5,308 crore against dues receivable from Vodafone Idea.
Financial highlights for Mar-23 compared yoy and sequentially
| Indus Towers | |||||
Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 6,752.90 | ₹ 7,116.30 | -5.11% | ₹ 6,765.00 | -0.18% |
| Net Profit (Rs cr) | ₹ 1,399.10 | ₹ 1,828.50 | -23.48% | ₹ -708.20 | -297.56% |
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| Diluted EPS (Rs) | ₹ 5.19 | ₹ 6.79 |
| ₹ -2.63 |
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| Net Margins | 20.72% | 25.69% |
| -10.47% |
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Net profits were lower by -23.5% at Rs1,399 crore due to higher provisions compared to the year ago period for Vodafone dues. However, Indus Towers has adequate charge on assets and personal guarantees from the promoters, which can help the company to recover most of the dues over time. The net margins dropped by nearly 500 bps on a yoy basis.