Indus Towers - Q1 FY22 Result Report - YES Securities

(Rating: ADD, TP: Rs250, Upside: 12.6%)

- Reported Core revenue of Rs 42,113mn, up 1.7% QoQ (inline). The growth was led by 0.9% QoQ increase in the number of colocations and 0.6% QoQ increase in average sharing revenue per sharing operator.

- Negative energy spread ( -2.29%) led to decline in EBITDA margin by 66bps QoQ (slightly below the estimate)

- Operationally, the average sharing factor was flat QoQ at 1.8x. (same as closing sharing factor). The number of towers increased by 1% QoQ to 180,997; while the number of colocations increased by 0.9% QoQ to 325,355.

- However, the precarious financial situation of Vodafone idea is a major risk factor and a big overhang on the stock. Valuation remains attractive at PE of 9.6x on FY23 earnings. We maintain ADD Rating on the stock and cut down our target price to Rs 250 to factor in growing risk about sustainability of Vodafone Idea Ltd.

Shares of INDUS TOWERS LIMITED was last trading in BSE at Rs. 223.3 as compared to the previous close of Rs. 222.15. The total number of shares traded during the day was 1029443 in over 5182 trades.

The stock hit an intraday high of Rs. 225.9 and intraday low of 220.25. The net turnover during the day was Rs. 229589868.

Source : Equity Bulls

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