Indus Towers Sees Strong Cash Flow; Bullish On Its EV Foray
Indus has launched pilot EV charging stations in Gurugram and Bengaluru.
India’s largest mobile tower construction company, Indus Towers Ltd., on Friday said that the cash flow for the company is robust and, coupled with a significant reduction in debt reduction in the third quarter of FY25.
“Cash flow situation has significantly improved compared with the past. In the future, there will be more decisions on capital allocation,” Indus said during its post-earnings call.
It further stated that the company is conscious of the fact that it has not paid any dividends for the past two years, adding that if, by year-end, it is still in a strong position, its board of directors will evaluate this decision.
On its foray into the EV charging sector, Indus said that it is still at a very nascent stage and the primary driver of its business will still be towers. “The EV charging business will be a separate business and a separate team will be driving the EV business,” Prachur Sah, chief executive officer of Indus Towers, said.
Indus has launched pilot EV charging stations in Gurugram and Bengaluru.
Sah said that it's a little too early to comment on potential investments in the business. “As we progress, we will understand how big this opportunity will be and we will make decisions accordingly.”
Vikas Poddar, the chief financial officer at Indus, said that the company is aspiring for double-digit returns from its EV business. “We are aspiring for mid- to high-double-digit returns,” Poddar said.
Indus has reported solid Q3 numbers for FY25. Its net profit more than doubled in the quarter, beating analysts' estimates. It posted a profit of Rs 4,003 crore in the quarter ended December, compared to Rs 1,540 crore in the same quarter of the previous fiscal, according to an exchange filing. This is above the Rs 1,907-crore estimate by analysts tracked by Bloomberg.
