Indus Towers pauses shareholder payouts amid Vi woes, high expenses

In 2024, Indus Towers conducted a share buyback—its first since 2016—worth ₹2,640 crore

- Jatin Grover

Bharti Airtel's telecom tower arm Indus Towers on Thursday said that it has put on hold any immediate plans to distribute cash to shareholders. The company is keen to conserve cash amid financial stability concerns surrounding its major customer Vodafone Idea, even as it is looking at a higher capital expenditure cycle, and evaluating potential inorganic growth opportunities.

"The board believes that this is the best interest of the company: strengthening its financial resilience and enabling it to respond effectively to any emerging opportunities and or risks, ensuring the security of its long-term business interest," Prachur Sah, managing director and chief executive officer of Indus Towers, said in a post-earnings call with analysts.

The company will now take a call on the cash distribution by the end of the current financial year.