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• Gross Revenue: INR77.3 billion in Q4 FY25, a 7.4% year-on-year growth.

• Core Revenue from Rental: INR50.4 billion, a 10% year-on-year increase.

• EBITDA: INR44.0 billion for Q4, a 7.1% year-on-year increase, but a 37.2% decline quarter-on-quarter.

• EBITDA Margin: 56.9%, largely flat year-on-year, but declined by 35.8 percentage points sequentially.

• Profit After Tax (Q4): INR17.8 billion, down 4% year-on-year and 55.6% quarter-on-quarter.

• Full Year Gross Revenue: INR301 billion, a 5.3% year-on-year increase.

• Full Year Core Revenue: INR192 billion, up 8.3% year-on-year.

• Full Year EBITDA: INR208.4 billion, up 41.9% year-on-year.

• Full Year Profit After Tax: INR99.3 billion, a 64.5% year-on-year increase.

• Free Cash Flow (Q4): INR38.7 billion.

• Free Cash Flow (Full Year): INR98.5 billion.

• Trade Receivables Reduction: INR25.5 billion during the quarter.

• Return on Capital Employed: 29.1% pre-tax over the past 12 months.

• Return on Equity: 33.4% post-tax over the past 12 months.

• Warning! GuruFocus has detected 4 Warning Signs with BOM:534816.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Indus Towers Ltd (BOM:534816) reported a year-on-year gross revenue growth of 7.4% for Q4 FY25, driven by robust tower and co-location additions.

• The company successfully cleared a large portion of overdue receivables from a major customer, positively impacting cash flows and financial health.

• Indus Towers Ltd (BOM:534816) executed a strategic acquisition of approximately 12,600 towers from Bharti Airtel, enhancing its tower portfolio.

• The company maintained a high network uptime of 99.98% in Q4 FY25, demonstrating strong operational performance despite adverse weather conditions.

• Indus Towers Ltd (BOM:534816) is actively expanding its renewable energy portfolio, adding over 15,000 solar sites during the year, contributing to sustainability goals.

Negative Points

• The company's EBITDA margin declined by 35.8 percentage points sequentially in Q4 FY25, primarily due to a one-time write-back in the previous quarter.

• There is uncertainty regarding the timeline for dividend distribution, as a committee has been formed to assess the modalities of cash distribution.

• The acquisition of Bharti Airtel towers was funded using cash reserves, which may impact the availability of funds for immediate dividend payouts.

• Despite significant 5G loading, rental revenues per operator have moderated, influenced by various factors including sharing discounts and product mix.

• The company's CapEx declined by 24% in FY25 compared to FY24, raising questions about future investment levels and growth potential.