Indus Towers Ltd Slips 5.38%, S&P BSE Telecom index Shed 1.04%.
Shares of Indus Towers fell sharply on August 3 after the company reported weak results for the quarter ended June.
Consolidated net profit rose 66 percent year-on-year to Rs 477 crore in the quarter as top line rose just one percent to Rs 6,897 crore and operating profit declined 34 percent to Rs 2,322 crore.
“Our financial results were the result of our prudent accounting practices as our receivables are under pressure due to the financial situation of one of our major customers,” the company said in a profit and loss statement.
Operating cash flow declined 60 percent to Rs 807 crore, reflecting the impact of non-payment by one of its customers.
The overall total tower count increased by 1,027 from the prior quarter to 186,474, which was lower than the company’s historical average. Shared revenue per tower fell 11.4 percent sequentially to Rs 75,688 crore in the reported quarter.
“The fundamentals of our business remain strong and the successful conclusion of the 5G auctions has further enhanced our prospects,” said Bimal Dayal, managing director and managing director of Indus Towers.
At 10:12 a.m., shares of Indus Towers were down 6.5 percent at Rs 205.2 on the National Stock Exchange.