Apr'25 View on Indus Towers Ltd

Indus Towers Limited is engaged in the business of object of, inter-alia, setting up, operating and maintaining wireless communication towers. • Indus’ Q3FY25 recurring EBITDA was in line with our estimates. • We expect Indus to resume dividend payouts in FY25E. • Vi’s fund-raise & long-term viability remain crucial for its network catch-up, a key re-rating catalyst for Indus. • Long-term growth may remain muted, as densification would likely be in the form of loadings, leaner towers and enhanced competitive pressures. Q3FY25 Earnings update: Positives: • Reported EBITDA (94% yoy, 43% qoq) was ~41% ahead of our estimate. • Co. has recovered almost 90% of its bad debt provisions from Vodafone Idea in the past four quarters. • Net debt (excluding leases) decreased qoq to ~Rs1010 cr in Q3FY25. • Mgt. guided for a strong order book - towers & tenants over next 3-4 quarters. Negatives: • Indus’ receivables increased ~Rs170 cr qoq in Q3FY25.