Indus Tower Share Price Declines After Q4 Results

Indus Tower's share price declined 7.24% following the release of its fourth-quarter earnings report. The company's consolidated revenue for the quarter increased by 2.38% to Rs 7,727 crore, compared to Rs 7,547 crore in the previous quarter.

This modest revenue growth, however, was overshadowed by a sharp decline in earnings before interest, tax, depreciation and amortisation , which fell by 37.17% to Rs 4,396 crore from Rs 6,997 crore. The drop in Ebitda reflects increased operational costs and other financial pressures faced by the company during the quarter.

The Ebitda margin also saw a significant contraction, dropping to 56.89% from 92.71%. This decline in margin indicates a reduction in the company's profitability and efficiency in managing its expenses. Additionally, net profit decreased by 3.99% to Rs 1,779 crore, down from Rs 1,853 crore in the previous quarter.

The scrip fell as much as 7.24% to Rs 378.65 apiece. It pared losses to trade 4.91% lower at Rs 388.15 apiece, as of 09:46 a.m. This compares to a 0.77% advance in the NSE Nifty 50 Index.

It has risen 9.97% in the last 12 months. Total traded volume so far in the day stood at 4.2 times its 30-day average. The relative strength index was at 55.

Out of 22 analysts tracking the company, 11 maintain a 'buy' rating, six recommend a 'hold', and six suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 12.6%.