Market Reaction
IndusTowers' share price fell 7% on Friday, May 2, slipping to an intraday low of ₹378.80 on the BSE. The decline came after the company reported its Q4 results post-market hours on April 30.
The dip in stock value followed a 4% year-on-year drop in consolidated Profit after tax (PAT), even as revenues showed growth. Despite the fall, Indus Towers' share price has increased 11.08% over the past year and 150% in the last two years.
Q4 Results: Mixed Signals for Investors
Revenue
- ₹7,727 crore in Q4 FY25
- 7.4% YoY increase from ₹7,193 crore in Q4 FY24
EBITDA
- ₹4,395 crore, showing a 7.1% YoY growth
Net Profits
- ₹1,779 crore consolidated PAT in Q4
- Down 4% YoY from ₹1,853 crore
FY25 Financial Performance
- Annual Revenue: ₹30,123 crore (up 5.3% YoY)
- EBITDA: ₹20,845 crore (up 41.9% YoY)
- Net Profit: ₹9,932 crore (up 65% YoY)
Dividend, Bonus, Buyback on Hold
Investors also anticipated updates on shareholder rewards such as dividends, bonus shares, or a buyback. However, the board has postponed any decision, instead opting to form a committee to explore various options.
"The Board will comprehensively evaluate all dimensions and recommend a suitable course of action," said the company.
Company Overview
Indus Towers, a primary telecom infrastructure provider, has been a key player in India's mobile tower segment. The recent financial performance shows stable operational metrics, although Profit dipped slightly this quarter.
Despite today's market reaction, Indus Towers' share price has shown strong historical performance, gaining substantially over the long term.
Summary
The Indus Towers share price drop follows mixed Q4 earnings. While revenues and EBITDA grew, the fall in PAT and the absence of immediate dividend news led to a bearish market response.
With FY25 showcasing strong annual growth and the company evaluating future shareholder benefits, investors may continue to monitor Indus Towers' share price movements closely in the coming weeks.
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