Indus Towers Q4 Net Profit Dips 23% To Rs 1,399 Cr On Drop In Revenue

Indus Towers reported on Wednesday 23 per cent decline in consolidated net profit in fourth quarter FY23 on account of drop in revenue and provision on account of doubtful receivables.

the net profit for the quarter stood at Rs 1,399 crore compared to Rs 1,829 crore in the same period last year. Revenue fell 5 per cent on a year on year basis to Rs 6,753 crore as the tower company continues to face challenges in recovering dues from Vodafone Idea. Earning before interest tax depreciation and amortization was down 15 per cent year on year to Rs 3447 crore.

Indus Towers said it has made an incremental provision of Rs 43 crore in the fourth quarter. While this was lower compared to previous quarters it reflected the continued recovery stress for the company. As of March end, the provision for doubtful receivables stood at Rs 5,453 crore.

“The financials of Q4 2021-22 included a one-time positive impact of Rs 547 crores on account of deferred recognition of revenue from past settlements. In 2022-23, the Company adhered to prudent accounting practices and reflected the stress on its receivables due to collection challenges faced from one of the major customers,” the company said.

Vi had submitted a payment plan that was approved by the tower company’s board in October 2022.  Indus Towers agreed to the telco’s proposal of substantially paying its billed amount till December. Vi had agreed to pay 100 per cent of the billed amount and outstanding amounts between January-July 2023.