Vodafone Idea’s Softer Payment Terms Have Confidence of Indus Towers

Indus Towers is confident in the revised payment plan after agreeing Vodafone Idea's request for easier payment terms. On the basis of the payment arrangement, the towers firm informed investors during its post-quarter earnings call that it anticipates a decrease in trade receivables starting January.

Highlights

  • Indus Towers agreed to the telecom operator's suggestion for softer payment terms in the September quarter in order to pay off its debts.
  • Vodafone Idea leases multiple towers and rooftop locations from Indus Towers to operate its network.
  • The company withheld information on Vodafone Idea's unpaid debts.

Follow Us

Vodafone Idea

Indus Towers agreed to Vodafone Idea's (Vi) suggestion for softer payment terms in the September quarter in order to pay off its debts. According to the revised payment terms, Vodafone Idea will pay 100% of the sums billed after December 31 and a portion of the monthly billing up until that point. Vodafone Idea will pay the remaining balance due as of December 31 between January and July 2023.




Positive About the New Payment Plan With Vodafone Idea

Indus Towers is confident in the revised payment plan after agreeing with Vodafone Idea's request for easier payment terms. On the basis of the payment arrangement, the towers firm informed investors during its post-quarter earnings call that it anticipates a decrease in trade receivables starting January.

Given the government's recent announcement of a telecom reform package, Vodafone Idea's participation in the 5G auctions, and the company's ongoing investments in its network, it is certain that one of its biggest clients would be able to pay off any outstanding debts. Indus Towers expressed confidence in Vodafone Idea's ability to pay back outstanding debts during the call because of the telecom operator's suggestion that it will soon finalise its fundraising plan.

However, the company withheld information on Vodafone Idea's unpaid debts. Vodafone Idea leases multiple towers and rooftop locations from Indus Towers to operate its network. The company had total trade receivables of Rs 6,499 crore at the end of September, up from Rs 6,250 crore at the end of June. The management of Indus Towers said that its current priority is on settling debts in cash.

Due to difficulties in collecting payments from its clients, Indus Towers has been experiencing cash flow problems. In the September quarter, its operating cash flows decreased 39% year over year to Rs 1,277 crore. The company also made a provision for doubtful debts totalling Rs 1,771 crore during the quarter, which also had an impact on its net earnings for July to September.

With the exception of the financial difficulties, the company is optimistic about the 5G opportunity and sees a significant increase in revenue potential as a result of increased traffic on the current tower sites, demand for leaner tower sites, and the requirement for 5G standalone sites as 5G usage grows.

Reported By

Bhavya is very keen on learning about developments that take place in the tech and telecom industry. She is also someone whom you can sit with and talk about all the Netflix movies and series on science fiction.

Recent Comments

SCKPA :

In 2100Mhz, sometime it showing 1.4mhz. Its not clear to me.

Airtel Urges Additional Tariff Revisions to Sustain Investments

Rishi Roy :

This is working good in my place. Volte is also working since last 3 days. Have consumed 25.71 gb in…

BSNL Reaches 41000 4G Sites Milestone

TheAndroidFreak :

Off Topic : iQOO 13, killer pricing I believe. I hope Indian pricing now stays under 60K for 512GB.

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

Faraz :

That's what I am saying, My father has retired, my mom is housewife. I am spending more on mobile recharge…

Airtel Urges Additional Tariff Revisions to Sustain Investments

Faraz :

Yes, but if 3G is up with 5 MHz B1, they can't use 10 MHz for 4G as far as…

Airtel Urges Additional Tariff Revisions to Sustain Investments

Load More
Subscribe
Notify of
4 Comments
newest
oldest most voted
Inline Feedbacks
View all comments