Indus Towers announced on Wednesday its anticipation of enhanced cash flow in the current financial year, buoyed by the success of its Rs 18,000-crore follow-on public offer (FPO). The company expressed confidence in recovering past dues from Vodafone Idea, potentially bolstering its financial position.
Engaging actively with Vodafone Idea, Indus Towers seeks to negotiate a revised payment plan aimed at settling the outstanding dues amounting to Rs 5,385 crore, for which the company had provisioned doubtful debt as of March 31, 2024. This plan may also encompass trade receivables, inclusive of interest on overdue payments, from Vodafone Idea recorded in Indus Towers’ books.
As of March 31, Indus Towers reported total trade receivables of Rs 6,451 crore, with an additional provision of Rs 5,385 crore set aside for doubtful debts. However, specific details regarding the breakdown of trade receivables, particularly the portion attributable to Vodafone Idea, were not disclosed.
In April, Indus Towers received Rs 360 crore from Vodafone Idea, contributing to the reduction of the latter’s provision of doubtful debts from Rs 5,700 crore to Rs 5,385 crore in the October-December quarter. This collection underscores Indus Towers’ ongoing efforts to recover outstanding payments and strengthen its financial stability.
