Indus Towers goes down

Indus Towers is among the top five losers today; from its close of Rs.408.05, it opened lower at Rs.392.95 and went down lower to Rs.378.70, a fall of over 7%.

The stock slipped after it deferred its final dividend decision for FY25, citing a reaon that it needs to maintain liquidity and financial flexibility, especially given ongoing issues related to receivables from Vodafone Idea (Vi).

Vi, a key customer and shareholder, owes substantial dues to Indus Towers for tower usage. Although Vi has started partial repayments, collection uncertainty remains, impacting Indus’s cash flows. The board decided to defer dividend distribution to preserve capital for operational needs and investments.

For FY24, Indus Towers had declared a Rs.11/share dividend, so the deferral this year marks a notable shift in policy.