Indus Towers Ltd witnessed a 7% rise in its shares during Wednesday’s trading session, driven by the provision for doubtful debt falling to ₹64.1 crore, a notable decline from ₹133.5 crore quarter-on-quarter (QoQ).
Another factor that drove the rally was that the telecom infrastructure company expanded its portfolio by incorporating a large number of new towers.
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Global brokerage firm UBS noted that the increase in tower network additions can be attributed to Bharti Airtel’s continuous efforts to expand rural coverage.
The agency anticipates that the company’s leadership will elaborate on the state of payments and recipients of Vodafone-Idea Ltd, along with offering information on the overall demand outlook for fiscal year 2025. The expectation is that both Bharti’s rural expansion and the rollout of 5G should decelerate from fiscal year 2025, according to UBS.
Meanwhile, on Tuesday, Vodafone Idea conveyed to the exchanges its intention to convene a board meeting on January 29 to deliberate and publicize its financial results for the December quarter.
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Ahead of the release of Vodafone Idea’s results, Indus Towers Ltd., a company for which Vodafone Idea is a significant customer, stated in its quarterly results that Vodafone Idea’s planned fundraising initiatives have not materialized yet.
“The financial plan of the said customer (Vodafone Ideo) has not materialized so far and the said customer has not made the committed payments on the outstanding amount due by December 31, 2022,” Indus Towers wrote in its notes to account, as part of its income statement.
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The cumulative provisions for doubtful receivables related to Vodafone Idea stand at ₹5,699 crore, as reported by Indus Towers. This figure incorporates ₹5,308 crore from the fiscal year 2023.
At 11:30 am, shares of Indus Towers experienced a 7.4% increase, trading at ₹233.90 each on the NSE. The stock has shown a remarkable gain of 15% year to date.
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Published: 24 Jan 2024, 16:14 IST