Indus Towers block deal: 7.2% equity changes hands, stock slips; KKR & CPP likely sellers
At around 10:13 a.m., shares of Indus Towers traded 1.44 per cent or Rs 3.2, lower at Rs 218.8 apiece. The market capitalisation of the company at around the same time stood at Rs 58,965.22 crore.
Shares of Indus Towers slipped as much as 2 per cent in morning deals on Thursday (February 1) after 7.2 per cent equity shares changed hands via a block deal, which translates to 19.77 crore shares. As per Zee Business Research, KKR and CPP are likely sellers.
At around 10:13 a.m., shares of Indus Towers traded 1.44 per cent or Rs 3.2, lower at Rs 218.8 apiece. The market capitalisation of the company at around the same time stood at Rs 58,965.22 crore.
How did Indus Towers fare in Q3?
The telecom infrastructure major posted a consolidated profit after tax (PAT) of Rs 1,541 crore in the December quarter, the company said on Tuesday. The company had posted a loss of Rs 708 crore in the year-ago period. The company's consolidated revenue grew 6 per cent in the third quarter of the ongoing fiscal year to Rs 7,199 crore from Rs 6,765 crore a year ago.
"Our third consecutive quarter of record tower additions demonstrated our robust operational performance. We expect our major customer's focus on its network expansion and the ongoing 5G rollouts to continue, yielding growth opportunities for us in the near term," Indus Towers Managing Director and CEO Prachur Sah said in the statement.
The company's total number of towers increased by 22,383 on a year-on-year basis to 2,11,775." The return on capital employed improved to 19.2 per cent as against 12.5 per cent on a year-on-year basis. The third quarter of the financial year had an impact of Rs 2,270 crore due to provision for doubtful debts and Rs 493 crore from exceptional items," the company said. Indus Towers has made a provision of Rs 5,699 for doubtful receivables by Vodafone Idea as of December 31, 2023.
Zee Business Panellist Vikas Sethi recommended buying shares of Indus Towers at the current levels. He expects the stock to rally in Friday's trade.
Indus Towers share price: Past performance
In a year, shares of Indus Towers have gained over 51 per cent against the Nifty 50's rise of 23 per cent.
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