Multibagger telecom infra player Indus Tower is scheduled to announce its quarterly results for the three-months ended on June 30, 2024 on Tuesday, July 30. Along with the announcement of quarterly results, the company of Indus Towers Ltd will also consider and approve the proposal for buyback of fully paid-up equity shares of Rs 10 each, said the company.
Analysts, tracking the counter, are expecting it to report a revenue around Rs 7,500 crore up 5-7 per cent on year-on-year (YoY), while Ebitda is seen in the range of Rs 3,750-4,000 crore, depending upon the provisions for the bad debts on a quarter-on-quarter (QoQ) basis. Net profit may remain flat, while Ebitda margins may increase up to 500 basis points (bps) yearly.
The buyback announcement for the telecom infra player will be another key, along with the net tower addition during the quarter. Along with this management's guidance for the growth and rollout of more towers will actively tracked by the street in the coming months.
Kotak Institutional Equities expects Ebitda to increase 4 per cent QoQ, reflecting robust net tenancy additions and marginally higher ARPT. Reported Ebitda would likely be boosted by a reversal of bad debt provisions. It assumes a reversal of Rs 500 crore in 1QFY25. It models net tower additions of 6,000 and net tenancy additions of 5,750 for the quarter.
Kotak sees Indus Towers' revenue at Rs 7,581.4 crore, up 7 per cent YoY, while net profit is seen at Rs 1,483.7 crore, marginally down QoQ but rising 3.6 per cent YoY. Ebitda may come in at 3,864.1 crore, up 8.4 per cent YoY with Ebitda margins expanding 58 per cent on a yearly basis. It has a 'reduce' rating on the stock with a target price of Rs 350.
Ahead of its quarterly results, shares of Indus Towers rose more 2.31 per cent to Rs 453.45 on Tuesday, commanding a total market capitalization of more than Rs 1.22 lakh crore. The scrip had settled at Rs 443.20 in the previous trading session on Monday.
BNP Paribas expects Indus Towers' rental revenue growth led by new tower additions for Airtel. We expect EBITDA growth to be slightly higher than the increase in rental revenue, it said. The brokerage has a 'buy' rating on the stock with a target price of 460 on the stock.
BNP Paribas pegs Indus Towers' Ebitda at 3,844.6 crore, up 8 per cent YoY and 4 per cent QoQ, with Ebitda margins coming in at 52.2 per cent, expanding 213 bps on a yearly and 102 bps on a quarterly basis. Revenue is seen at Rs 7,319.1 crore, mostly flat on both comparisons with total towers increasing to 2,24,236 for the quarter, up 13 per cent YoY.
Shares of Indus Towers gained more than 165 per cent in the last one year, while the stock has rallied about 125 per cent in the year 2024 so far. The stock has nearly doubled in the last six months, while he has jumped about 16 per cent in the last one month.
"We built 7,100 net tenancy additions in 1QFY25 for Indus Towers. We expect robust tower additions at 7,000. We assume rentals to be flat QoQ. However, we expect revenue to grow by 5.1 per cent QoQ due to seasonally higher (energy) passthrough revenue while EBITDA to rise 2 per cent QoQ, assuming similar level of past dues recovery from VIL like 4QFY24," said JM Financial.
The brokerage expects Indus Towers to report a revenue of Rs 7,561.3 crore, up 6 per cent YoY, while Ebitda may come in at Rs 4,185.2 crore, rising over19 per cent YoY with Ebitda margins coming in at 55.4 per cent, expending sharply about 570 bps. JM Financial has a 'hold' rating on the stock.
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