Telecom stock crashes 7% after board delays bonus & buyback announcements post Q4 results

The shares of the prominent tower manufacturer plummeted up to 7 percent in today’s trading session after the company board delayed bonus, buyback announcements post Q4 Results.

With a market capitalization of Rs 1 lakh crore, the shares of Indus Towers Ltd were trading at Rs 382.60 per share, decreasing around 6.24 percent as compared to the previous closing price of Rs 408.05 apiece.

Reason for fall

The shares of Indus Towers Ltd have seen bearish movement after the company failed to announce shareholder value enhancement proposals, which were expected to be discussed alongside its quarterly financial results.

According to the exchange filing, the Board considered various avenues of enhancing returns to its shareholders, including buyback, bonus by way of shares and/or debentures, or dividend.

After detailed deliberations, the Board decided to constitute a Committee to comprehensively evaluate all options/ dimensions and make a suitable recommendation to the Board for a final decision.

As per the data available on BSE, the company last paid a dividend of ₹11 per share to shareholders on May 12, 2022. Indus Towers had carried out a share buyback in 2024, its first after 2016.

Looking forward to the company’s financial performance, revenue magnified by 7 percent from Rs 7,193 crore in Q4FY24 to Rs 7,727 crore in Q4FY25, Further, during the same time frame, net profit declined by 4 percent from Rs 1,853 crore to Rs 1,779 crore.

India has deployed approximately 465,000 5G BTS, with over 50,000 added in the last year. As 5G penetration rises, loading revenues are expected to grow significantly. 5G subscriptions in India are projected to reach 970 million by 2030, reflecting strong future demand and network expansion.

Written by Abhishek Singh

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