Indus Towers Posts Rs 708 Crore Internet Loss as Uncertain Debt Provision Rises

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Indus Towers, India’s largest telecom tower firm, has posted a internet lack of Rs 708 crore in Q3 FY23. A yr in the past, throughout the identical quarter, the corporate posted a internet revenue of Rs 1,571 crore. This loss throughout this quarter has come as a result of Indus determined to make a Rs 2,298.1 crore provision of uncertain debt as Vodafone Concept’s funding plans stay muted. Vi, one of many largest clients of Indus Towers, has not been in a financially sound place to repay the dues. Vi has been attempting to boost funds for a very long time, however nothing has materialised. On its quarterly earnings assertion, Indus mentioned that Vi had indicated challenges in complying with larger funds sooner or later.

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Within the fiscal second quarter, Indus had provisioned Rs 1770.9 crore as uncertain debt due to Vi’s state of affairs. The telco owes the tower firm about Rs 7500 crore. Vi’s month-to-month dues are upwards of Rs 300 crore to the Indus Towers. In late 2022, Vi had promised Indus Towers that it will begin making full funds of the present dues from January 2023. Together with that, the telco mentioned that no matter dues it had pending until December 31, 2022, it will additionally clear that within the first seven months of 2023.

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Indus Towers had given a strong-worded warning to Vi that if it did not repay its dues, the telco’s tower entry could be reduce off. Most of Vi’s towers are provided by Indus Towers, and thus if Indus does not permit Vi to entry the towers, it will imply massive troubles for the telco and its clients. This could additionally damage Bharti Airtel, a serious stakeholder within the tower firm. Airtel needs Vi to do properly in order that the telco can repay its dues to Indus Towers.

There have been stories that Airtel is able to give away its proper of first refusal if Vodafone needs to promote its remaining stake in Indus Towers in order that it might present the funds to Vi.



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