Indus Towers Ltd. share price target

Bharti Infratel Ltd (BHIN) the market leader in the domestic telecom tower space is a proxy play on Indias telecom story. At present its consolidated asset base comprises of 95,801 towers (~20% of the industry) and post-merger with Indus Towers, its asset base would grow to ~1,70,000 towers, thereby consolidating its market share to ~30%.

Bharti Infratel, including Indus Towers, is the leading telecom tower infrastructure provider in India

The key risk for Infratel is on tenancy growth concerns and possibly in worst case, Vodafone Idea's survival (it is an anchor tenant). While there are large opportunities in adjacent areas over the long term (viz small cells/smart cities/in building solutions/active network sharing), near/medium term challenges cannot be ruled out. Therefore, we maintain our HOLD...

Energy revenue also declined by 8.1% QoQ to INR12.6b (16% beat); we anticipated it would be lower due to falling crude prices. The average sharing factor stood at 1.82x v/s 1.84x WFH model being the new norm would open up demand for new technologies such as 5G, and BHIN is equipped and concerns of an increase in receivables, which should be considered in conjunction with unbilled revenues (which have seen only a marginal increase). Management highlighted the business is on track on a normal basis and has largely recovered from the revenue/profitability losses due The board has declared dividend of INR2.3/share as it received dividend from Indus, in line with the companys policy of passing on the dividends received from associates to shareholders.

Bharti Infratel, as one of the pioneers of Shared Tower Telecom Infrastructure services, Infratel has helped Telecom operators maximize their reach in a short period of time by providing them compelling capex saving opportunities, as a result, making them focus their investment in reaching out to more and more communities across the country, and contributing in offering highly affordable telecom services which helps integrate more...

The Consolidated revenue for the quarter was Rs. 1682.10 Crore. Consolidated EBITDA was at Rs. 1146.50 Crore. The Operating Free Cash Flow was at Rs. 847 Crore down by 27% Y-o-Y. The net profit for the quarter was Rs. 650 Crore up by 7% Y-o-Y. The Return on Equity pre-tax and...

Proforma consol. EBITDA plunged 12.1% QoQ to INR13b (14% miss) on 16.3% QoQ decline in Rental EBITDA to INR12.2b (17.5% miss). On the other hand, Energy EBITDA grew three-fold to INR815m (v/s our est. of INR307m). The drop in EBITDA could be attributed to 2.5x increase in other expenses. EBITDA margin shrank 450bp QoQ to 36.5% (510bp miss) on decline in Rental EBITDA. While Rental EBITDA margin contracted 980bp to 55%, Energy EBITDA margin expanded 430bp to 5.9%. PBT/PAT declined 21% QoQ to INR7.9b/INR5.9b (14% miss)....

Bharti Infratel reported another muted operating performance. Revenues (on a proportionate consolidation basis) came in at | 3624 crore, up 0.7% QoQ. Core rental revenues came in at | 2251 crore, down 1.4% QoQ. Revenues would have been lower but for extended occupation of exiting tenants (~3564 collocations where actual exits yet to happen despite exit notice). Furthermore, it should be noted that underlying Q3FY20 revenue growth was weak while reported numbers are higher on account of exit penalty (| 107.3 crore) and Ind-AS 116 adoption (rent equalisation of | 63.6 crore)....

Q3FY20 was yet another quarter of improved net additions on both towers and co-locations. Total towers and co-locations(including 42% of Indus Towers numbers) as end of Dec 31, 2019 stood at 94244 numbers and 174150 numbers reflecting an addition of 823 numbers of towers and 744 numbers of co-locations over Sep 30, 2019 numbers. Consolidated Total income rose 2.1% to Rs 2069.70 crore in Q3 December 2019 as compared to...