Indus Towers shares subsequently traded at Rs 187.85, down 1.65% on the BSE.
The dues from Vi hurt Indus’ second-quarter net profit, which slid 44% on-year to Rs 872 crore. Operating cash flows also fell 39% on-year to Rs 1,277 crore despite an 8.2% decrease in its trade receivables to Rs 6,499 crore. Consolidated revenue, though, rose 16% on-year to Rs 7,967 crore.
“Though near-term challenges on receivables and survival of one major client persist, we believe that few positive developments on Vi front and government relief package for telecom sector during past 1 year, probability of survival of Vi still remains,”
Securities said in a note.
It added that in view of better business potential, the recent rental hike and the likely increase in infrastructure spending by telecom operators in 5G rollouts, it maintained a buy rating on Indus.
Indus said it had agreed to the customer’s proposal for softer repayment terms. “During the last quarter, the customer had informed the company that a funding plan was under finalization with its lenders and had proposed…to pay part of the monthly billing till December 2022 and 100% of the amounts billed from January 2023,” Indus said, adding that it had agreed to the proposal.
Under the plan, Vi will pay its dues outstanding as of December 31, 2022, between January 2023 and July 2023, and 100% of its dues from January 2023 onwards.
