Indus Towers’ doubtful receivables from Vodafone Idea decline for second quarter in a row
As of now, Vodafone Idea has paid ₹2,328 crore towards outstanding dues, including ₹1,028 crore for the quarter ending September 2024.
Indus Towers continues to recognise revenue for the services provided to Vodafone Idea, with doubtful receivables related to the company standing at ₹3,548 crore as of September, down from ₹5,386 crore in March 2024.
Vodafone Idea will need to provide bank guarantees from October 2025 to September 2026.
The debt-ridden telco may seek a waiver from the Department of Telecommunications (DoT) regarding the payment of these guarantees.
Vodafone Idea has been in discussion with the DoT for the waiver of bank guarantee which the company is required to submit a year before the due date for payment of spectrum acquired before 2022.
The moratorium for spectrum auction dues for Vodafone Idea comes to an end in September 2025 and bank guarantees have to be submitted at least a year in advance for securing the dues.
The telecom operator was scheduled to submit bank guarantees in tranches for different auctions, starting from September 20.
Voddafone Idea will have to submit bank guarantees worth a total of over ₹24,700 crore to the government in the coming months.
The company has also approached the government seeking relief on ₹70,000 crore adjusted gross revenue (AGR) dues after the Supreme Court rejected its curative petition for correction in the calculation of the statutory dues and waiver of penalty and interest thereof.
As of June 30, 2024, Vodafone’s payment obligation to the government stood at ₹2,09,520 crore as including deferred spectrum payment obligations of ₹1,39,200 crore and AGR liability of ₹70,300 crore.
On Tuesday, shares of Indus Towers Ltd. closed 1.29% lower at ₹370.50 apiece on the NSE. The stock has gained over 80% so far in 2024.
