Indus Towers optimistic about Vodafone Idea clearing outstanding dues soon; after raising ₹18,000 crore from the FPO
Upstox
2 min read • Updated: May 2, 2024, 10:17 AM
Summary
Indus Towers expects Vodafone Idea to clear outstanding dues soon following the telco's successful fundraising. Discussions are ongoing, and the recent capital infusion by Vodafone Idea is expected to expedite the process. This, in turn, could improve Indus Towers' cash flow in the coming year.
Telecom infrastructure firm Indus Towers expects to get its dues cleared soon from Vodafone Idea after the telco raised ₹18,000 crore from the equity market, a senior company official said on Wednesday.
Without naming Vodafone Idea, Indus Towers Managing Director and CEO Prachur Sah said during the company's earning call that discussions are on with the company on the issue. "On the customer's question on dues and tenancies, at this point of time, I think we are currently working with the customer to define how this is going to work and we expect our dues to be cleared," Sah said.
Without naming Vodafone Idea (VIL), Indus Towers in its financial report said it has "doubtful receivables of ₹5,385.3 crore, comprising all overdue from the debt-ridden telecom firm as of March 31, 2024". Sah did not commit any timeline for clearance of dues but said "it should be quick".
VIL recently raised ₹18,000 crore from the FPO, which is expected to provide operational support to the company and clear partial debt. Indus Towers Chief Financial Officer Vikas Poddar said based on discussions with the customers on the clearance of dues, the company's cash flow is likely to improve in FY25.
For the year ended March 31, 2024, Indus Towers posted close to a three-fold jump in consolidated profit to ₹6,036.2 crore from ₹2,040 crore at the end of FY23. The annual revenue from operations remained almost flat at ₹28,600.6 crore during the fiscal year compared to ₹28,381.8 crore in FY23.
At 9:49 AM, the shares of Vodafone Idea traded 0.76% higher at ₹13.30 on NSE. Similarly, shares of Indus Towers traded 0.76% higher at ₹357.50 on NSE.