Bharti Airtel’s Telecom Tower Arm Indus Towers said on Thursday that any immediate plans to distribute cash to shareholders had taken place. The company wants to save cash in fear of financial stability around its main idea of Vodafone customer, even though it looks at the cycle of higher capital expenditure and evaluates the potential possibilities of inorganic growth.
“The Board of Directors believes that it is the best interest of the company: strengthening its financial resistance and allowing it to respond effectively to all emerging opportunities and risks, ensuring the security of its long -term business interest,” said Prachur Sah, CEO and CEO of Indus Towers, said analyzes.
The company will now call for cash distribution by the end of the current financial year.
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Without naming the idea of Vodafone loaded debt, Sah said that his customer’s stability was not the only reason for the Council in short -term cash to interrupt cash, but also other factors. “The Board of Directors remains fully determined to create a value for shareholders, namely the IP closest possible renewal of distributions,” he added.
Comments from SAH to a decision to suspend cash return to shareholders – if, via dividends, return or bonuses – transmits meaning, especially because Indus Towers receives regular payments from the idea of Vodafone, including some of its past fees. The movement of the company to reward in the near future for shareholders in the near future, also goes against the expectations of analysts who expected to distribute cash with regard to improved cash flows.
In 2024, Indus Towers made a purchase of shares – first since 2016 – £2 640 crore. Company shares dropped by nearly 6% £361.40 per piece on NSE on Thursday because he stopped at the remuneration of shareholders and his quarterly profit dropped by 10%.
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In April June announced Indus Towers free of charge generation of cash flows £1 566 crore, compared to £1 870 crore in the previous period. The company said its generation of cash flows during the quarter of June was powered by permanent commercial momentum and receivables, which also led ka £400 crore reduction of business receivables gradually.
At the end of June, the company’s business claims were on £4 361 crore, compared to £4 768 at the end of March, period and £5 722 crore in the previous quarter.
Although the idea of Vodafone has cleaned its fees, Indus Towers currently created a dubious debt £210 Crore in relation to the idea of Vodafone since June compared to £298 crore since March. At present, Vodafone Idea’s ability to continue in interest and settles its obligations depends on the support of the Ministry of Telecommunications (DOT) regarding modified gross income (AGR), Fundraise through its own capital and debt and generating cash flows.
One of the key reasons why Indus Towers captivated cautious access to the division of cash could be his concerns related to the possible loss of business from the idea of Vodafone if the telecommunications operator is unable to continue working. In its earnings, Tower Company acknowledged that if its Customer (Idea Vodafone Idea) is unable to continue in interest and Indus Towers failed to attract new customers, there might be an adverse impact on its business.
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In April to June, Indus Towers announced a year -on -year (year -on -year) increase in revenue from operations to 9.1% £8 058 crore. However, net profit dropped by 9.8% to £1 737 Crore due to higher expenditure, such as depreciation as a result of the new Bharti Airtel towers and higher energy and energy expenditures such as increased diesel consumption: The company has seen a year -on -year diesel consumption in the fourth quarter of FY26. This has been attributed to unforeseen events such as the early onset of the monsoon and an unusually high number of weather -related disorders (severe collisions and storms) that required more diesel use to maintain network operation, said during earnings.
As for the opportunities of organic and inorganic growth, Sah said: “The aim is to see how we can capture the maximum market share in terms of towers in India. This now focuses on the growth of business in the tower.”
In addition to growth opportunities, Tower Company focuses, among other things, on maintenance of old places to maintain old places, new tower accessories, technological transition with regard to battery for Tower infrastructure.
In the quarter of June, the company spent capital expenses £1 948 crore, compared to £1 882 crore in the previous period. Of this maintenance CAPEX, which is on the repair and maintenance of existing tower places, has increased to £551 crore from £260 crore a year ago.
“We have an aging portfolio and it has been years when we see a lot of focus on strengthening the tower, maintenance, etc. This is one such year when we focus a lot on strengthening our towers and basically preparing these towers for any rental growth,” said Vikas Poddar.
Indus Towers moves from old batteries to more lithium ions, new technological batteries that have a higher initial CAPEX, Poddar said, adding that for the next 3-4 years the maintenance of CAPEX will be higher.
Sah said that the increments of the tower from all customers will be strong in the current financial year. Increasing data consumption and increasing 5G acceptance will further create meaningful opportunities for growth, he added.
In the quarter of June, the company added 2,468 towers gradually, with its towers counting at 251,773. The common location was 411 212 compared to 405,435 in the previous quarter. Common location or lease agreements concern how many telecommunications operators use one tower. One tower can host equipment for multiple mobile operators-everybody is considered a common placement.
The rental portfolio ratio or the average sharing factor for Indus Towers was 1.63 during the quarter. This is a key metric that tells the average number of tenants per tower.
(Tagstotranslate) Bharti Airtel (T) Telecom Tower Arm Indus Towers (T) Confits on Financial Stability (T) Vodafone Idea (T) Permanent Business Movement
