Shares of Indus Towers Ltd rallied 7% in today's trade because of two key reasons. Firstly, the provision for doubtful debt is lower at ₹64.1 crore, compared to ₹133.5 crore quarter-on-quarter (QoQ). Secondly, the telecommunications infrastructure company has also added many towers.
Global brokerage UBS said that the expansion in tower net adds is due to Bharti Airtel's ongoing rural coverage expansion.
UBS expects the company's management to provide more colour on the status of payments and receivables from Voda-Idea Ltd as well as on the overall demand outlook for FY25, as it believes both Bharti's rural expansion and 5G rollout should slow from FY25.
The company will hold its conference call at 2:30 pm today.
Meanwhile, Vodafone Idea informed the exchanges on Tuesday that it will hold a board meeting on January 29, to discuss and announce its December quarter results.
Ahead of its results, Indus Towers Ltd., of whom Vodafone Idea is a key customer, said post its quarterly results that Vodafone Idea's proposed fundraising plans have not materialised yet.
"The funding plan of the said customer (Vodafone Idea) has not materialised till date and the said customer has not made the committed payments about the outstanding amount due as of December 31, 2022," Indus Towers wrote in its notes to account, as part of its earnings statement.
The total allowances for doubtful receivables from Vodafone Idea are currently at ₹5,699 crore, according to Indus Towers, which also includes an amount of ₹5,308 crore from financial year 2023.
At 12:06 pm, the scrip of Indus Towers was trading 6.98% higher at ₹232.25 apiece on the NSE. The stock has gained 15% so far this year.
First Published: Jan 24, 2024 12:09 PM IST
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