Indus Towers completes Passive Infrastructure acquisition from Bharti Airtel while putting Bharti Hexacom transaction on hold
In the last two years, the stock has given 158 per cent returns to its investors. Investors can keep this telecom stock on the radar.
Indus Towers Limited has announced updates regarding the purchase/acquisition of Passive Infrastructure Business Undertaking from Bharti Airtel Limited and Bharti Hexacom Limited. The sale/transfer of Passive Infrastructure Business Undertaking by Bharti Hexacom to Indus Towers has been put on hold. Indus Towers stated that any further developments in this matter will be duly informed to stakeholders. However, Indus Towers has completed the transaction for the purchase of Passive Infrastructure Business Undertaking from Bharti Airtel.
Indus Towers Ltd. engages in the provision of telecom tower infrastructure for telecommunication services. It operates through the Infratel and Proportionate Share of JV. The company was founded on November 30, 2006 and is headquartered in Gurugram, India.
The company demonstrated strong operational performance during Q3, marked by significant tower and tenancy additions. It maintained a dominant position in major customer rollouts, leading to the installation of towers in challenging and remote locations such as Leh, Ladakh, and Arunachal Pradesh. During the quarter, the company added 4,985 macro towers and 7,583 co-locations, resulting in a year-on-year growth of 10.8 per cent in macro towers and 7.2 per cent in co-locations. The industry-leading tenancy ratio remained stable at 1.65x, supported by a net co-location addition of 7,715 during the quarter.
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On the regulatory front, important developments are expected to boost operational efficiency. The implementation of the Right of Way Rules, 2024 aims to address interpretational challenges and streamline the deployment of telecom infrastructure. Additionally, the Green Energy Open Access policy, now notified in 24 states, promotes greater adoption of renewable energy sources. The introduction of a composite billing scheme in 11 states further enhances operational efficiency by optimizing billing processes.
In terms of 5G infrastructure, the company continued its robust network expansion. The total number of 5G base transceiver stations (BTS) deployed reached approximately 465,000, with more than 50,000 BTS installed over the last calendar year alone. As 5G adoption accelerates, 5G loading revenues are expected to grow steadily, with India's 5G subscriptions projected to reach 970 million by 2030. Data consumption remains strong, with 5G data usage contributing 22.7 per cent of total data usage in Q2 FY25.
Financially, the company delivered a solid performance. Total revenues grew by 4.8 per cent year-on-year to Rs 75.5 billion, while core revenues from rentals rose by 7.5 per cent year-on-year to Rs 48.2 billion. EBITDA stood at Rs 70 billion, reflecting a 93 per cent year-on-year and 43 per cent quarter-on-quarter growth, with EBITDA margins improving to 92.7 per cent. Financial performance was further strengthened by the significant recovery of dues from a major customer, resulting in a write-back of provisions for doubtful debt amounting to Rs 30.2 billion. Profit after tax.
In the last two years, the stock has given 158 per cent returns to its investors. Investors can keep this telecom stock on the radar.
Disclaimer: The article is for informational purposes only and not investment advice.