Indus Towers is a telecom service provider giant in India. The Previous name of the company was Bharti Infratel. It is a large cap and a Nifty 50 company. Recent negativity in the telecom sector has not much affected the Indus Towers share price.
Indus Towers Share Price Graph
About the Company
Being a relatively new company, compared to its peers, it has grown exceedingly well. Incorporated in 2006 as a subsidiary of Bharti Airtel, it is an integral part of the Bharti group. In 2008, Bharti Airtel transferred its infrastructure of towers to Indus Towers Limited.
The company runs its business by providing towers and related infrastructure to telecom service providers in India. and earning lease money and/or subscription from its customers. Indus Towers owns a 42% share of Indus, another giant in the tower business in India. Bharti and Indus jointly supply towers and related infrastructures to telecom service providers in India. Besides Bharti Airtel, Bharti and Indus have three big players in the Indian telecom industry as their main customers. They are Vodafone, Idea Cellular, and Bharti Hexacom.
Indus Towers together with Indus has a nationwide business, providing towers to 22 telecom circles in India. Bharti alone runs and operates more than 35000 towers in India. As per the agreement in 2014 with Reliance Jio, Jio would provide telecom service using Indus Towers’s infrastructure of towers for its pan-India telecom service.
Reliance Jio’s aggressive marketing and pricing has affected the balance sheet of all telecom service providers in India except Indus Towers as it has earned revenue from Jio through its infrastructure of towers.
The subsidiaries of Indus Towers are Bharti Hexacom, Bharti Enterprise, Bharti Telemedia, Bharti Airtel Services, and Centum Learning.
Company Financials for Analyzing Indus Towers Share Price
The shares price of Indus Towers closed at Rs 265.25 on 22.10.18. on the National Stock Exchange. The present market cap is Rs 48811.16 crores. The earning per share or EPS over the trailing 12 months is Rs 13.70. The price-over-earning ratio or P/E is 19.36. The Book Value per share is Rs 91.72. The price over Book Value ratio or Price/BV is 2.89. The dividend yield is 5.28%.
The quarterly result of this fiscal which ended on June 30 2018 shows that the EPS is Rs 3.45. The quarterly sales figure stands at Rs 1697 crores. The operating profit is Rs 765.60 crores. Other income stands at Rs 36.40 crores. The EBITDA is Rs 802.00 crores. And the net profit earned in this quarter is Rs 638.00 crores.
The return on assets or ROA is 33.91% and the return on equity or ROE is 14.69%. The return on capital employed or ROCE is 10.42%. The fixed asset turnover stands at 0.40.
Analysis of Other Ratios
In terms of liquidity, the company ratios are – Quick ratio 0.59, Current ratio 0.61 and Cash ratio 0.01. These performances, though are far below the peer average. In terms of Solvency, the Debt to Equity ratio is 0.00 and in terms of coverage ratio, the cash flows to long-term ratio are 0.00. Indus Towers shows good performance in these two areas, that is solvency ratio and coverage ratio. Overall we can say though Indus Towers’ fundamental data show good performance over its peers, the financial strength is not that good when compared to its peers.
Company Summary
Indus Towers Ltd is a large-cap company operating in the telecom sector of India and providing infrastructure and related services to the telecom sector.
The company earns its revenue from its operation in the telecom infrastructure area. For the year ending 31 March 2018, Indus Towers Ltd. earned Rs 6618.00 crores from its infrastructure activities which contributed 100% of its total sales.
The audited data for the quarter that ended on 30 June 2018 shows consolidated sales of Rs 1697 crores which shows an increase of 1.45% from the sales data of the last quarter which was Rs 1672.80 crores and increased by 6.50% from the sales figure of the same quarter of the last fiscal which was reported Rs 1593.40 crores. The company reported a net profit after tax of Rs 341.40 crores in the quarter ended 30 June 2018.
The top management of the company has Mr Bharat Suman Raut, Mr Akhil Gupta, Mr D S Raut, Mr N Kumar, Mr Jitender Balakrishnan, Mr R P Singh, Mr R B Mittal, Ms Anita Kappor, Mr S Nayar, Mr Tan Yong Choo and Ms Leena Srivastava.
Indus Towers Ltd. has employed M/S Deloitte Haskins u0026amp; Sells LLP as its auditor.
As per data from the second quarter of this fiscal, the company has a total no of 1,849,608,246 shares outstanding.
Final Thoughts about Indus Towers Share Price
In conclusion, Indus Towers remain well-placed to benefit from the increasing adoption of telecom services in the Indian market. Furthermore, its strong cash position and associated incentives for dividends give potential investors confidence that the company’s share price is likely to remain stable or increase over time. Interested parties should therefore consider having some exposure to Indus Towers as part of their portfolio, which will help them get a portion of any future appreciation of the stock price.