Indus Towers board to consider share buyback proposal on July 30

Indus Towers on Thursday announced that the board of directors of the company will consider a proposal for the buyback of its equity shares on July 30.

In a stock exchange filing, the telecom infrastructure company informed that the meeting of its Board of Directors is scheduled on Tuesday, July 30, and the proposal of share buyback is also on the agenda.

“To consider and approve the proposal for buyback of fully paid-up equity shares of ₹10/- each of the Company, including matters related/ incidental thereto, (‘Buyback’). in accordance with the applicable provisions under the Companies Act, 2013, the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended, and other applicable laws (if any),” Indus Towers said in a regulatory filing.

According to the regulations, the trading window for dealing in Indus Towers shares shall remain closed for all Designated Persons of the company and their immediate relatives till Thursday, August 01, 2024, in respect of the Indus Towers buyback proposal.

Indus Towers share buyback will include repurchase of equity shares of face value of ₹10 each. The last Indus Towers share buyback was carried out in June 2016 when the telecom infrastructure company was named Bharti Infratel.

Along with Indus Towers share buyback proposal, the company’s board will also consider and approve the audited financial results (Standalone & Consolidated) for the first quarter ended on June 30, 2024.

Indus Towers Q1 results are expected to be mixed. Net tenancy additions for Indus Towers is estimated to remain robust as Bharti Airtel continued its rural expansion during Q1FY25. Hence, Indus’ EBITDA is expected to grow 2.0% QoQ in Q1.

JM Financial builds in 7.1k net tenancy additions in Q1FY25 for Indus Towers versus 7.9k in Q4FY24. However, it assumes that rentals will be flat QoQ.

Therefore, revenue is likely to grow 5.1% QoQ to ₹7,561 crore while EBITDA is expected to improve 2% QoQ to ₹4,185 crore, while EBITDA margin may fall by 168 bps to 55.4% QoQ.

On Thursday, Indus Towers shares ended 0.41% lower at ₹424.80 apiece on the BSE.