Vodafone Idea (Vi), a struggling Indian telecom operator, has paid Rs 300 crore out of outstanding dues to Indus Towers. Indus Towers, a major telecom tower infrastructure company based out of India has found it hard to recover dues from Vi. The telco's cash-strapped condition is no secret and since Vi is the largest customer of Indus, its revenues are severely affected due to non-clearance of dues. But, during the earnings call on Wednesday for the December quarter, Indus Towers executives said that Vi had paid Rs 300 crore extra on top of the regular monthly due to clear the old outstanding dues.
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However, Rs 300 crore is just a drop in the ocean of debt for Vi. According to industry analysts (via ET), Vi's past dues to Indus are estimated at more than Rs 10,000 crore. The telco's inability to complete successful fundraising is hampering its growth and the vendors and tower companies to whom Vi owes money to. It is worth noting though, that Vi has been slowly clearing the bank dues.
Indus executives cleared that the Rs 300 crore was paid by Vi in January 2024, but the amount has been recognised as a payment in the December 2024 quarter, as it is to clear past or outstanding dues. Due to this, the doubtful receivables for the December quarter fell 52% sequentially to Rs 64.1 crore.
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The tower company in the past has directly threatened Vi that if it doesn't clear the dues, they will cut access to the towers which would be a nightmare for the telco and its customers across the country. Indus Towers is in a difficult position because of Vi and it has been trying to recover the dues from the telco in the best manner possible.
