Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 6 - Kunal Vora – BNP Paribas/Mumbai But if you can just give some sense on like what is your right to win, how many sites might have any potential, what is the kind of competition which is also working on this, like you do not own the land so how would the deal with landlords work out whatever you can provide on this? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited From a land acquisition perspective, it is quite similar to what we do in the tower space. I think the model for space and power is quite similar to what we do for towers, maybe some dimensioning is a bit different and our right to win probably comes from the ability to manage and deliver the sites and provide a large uptime for the charge rs, which need to stay up when they are on the streets. So our O&M practices, operation centre will give us the right to win . So that is the broad thinking on which we have started doing some pilots and as we progress we will understand how big this opportunity can be for us and we will keep you posted. Kunal Vora – BNP Paribas/Mumbai By when do you think we can hear more about this? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited Again, as I said Kunal it is very early stage. I cannot give you a timeframe. It is something that we have started just now so as things progress we will come to know. Kunal Vora – BNP Paribas/Mumbai Thank you. That is it from me. I will come back in the queue. Sunita - Moderator Thank you very much Mr. Kunal The next question comes from Mr. Manish Adukia from Goldman Sachs/Mumbai. Mr. Adukia you may ask your question now. Manish Adukia - Goldman Sachs/Mumbai Now when you think about the new customer Vodafone Idea, which you said has started rolling out and you have a good share of those rollouts can you give us a sense of what your market share with Vodafone Idea has been in the new rollout and is that broadly similar to the market share you have with your number one customer Bharti Airtel and is it safe to a ssume that majority of the rollouts have the visibility, which you talked about for the next few quarters for Vodafone Idea that is largely going to be on existing towers and for Vodafone Idea in particular you do not necessarily have to roll out new tower so they should largely come in the form of tenancy that is my first question? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited Thanks for the question again. Rather than giving you a specific number of the share what I can say is if you have seen the r ollouts that we have done over the last couple of years that has put us in a prime position to have towers available for a second tenant so I think that is a broad strategy that works out and I think hence we are in a pole position to b e able to monetize those towers, which are currently single tenant and when I was talking about the next three, four quarters it was not just VIL. I was talking about the overall market in terms of pipeline that we have. As far as building new towers for VIL or any other customer I think it will depend on their planning and network expansion. While we will not pick and choose, but I am very confident that with the footprint now that we have for our 1T towers, we can largely capitalize on them for a second tenant. But we will make sure the network expansion is met one way or the other. Manish Adukia - Goldman Sachs/Mumbai Got it helpful and just a second quick book keeping question so after the collections from Vodafone Idea in the quarter of ab out 30 billion odd in the form of past dues I know that the outstanding provision amount is about 5 billion or thereabouts . Is that all that is remaining now as far as past dues are concerned from Vodafone Idea or is there anything else on top of that as well? Thank you.

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 7 - Vikas Poddar – Chief Financial Officer – Indus Towers Limited Manish just to clarify the 30 billion is the provision write -back. Like I mentioned in my commentary a large chunk of that has been collected subsequently, but because we had the security with us we recognized the provision writeback in Q3 itself. As fa r as the 5 billion is concerned, I just want to clarify this 5 billion is the provision for doubtful debts that is remaining after the writeback. Now just to give you a bit of history, we had provided two years back some of the overdues to derisk our balance sheet and as and when we are collecting those overdues , we are writing back the provision . So the 5 billion is what is remaining. Obviously, the overall outstanding is more than that because as we have explained in the past we have been providing for the overdues, which were beyond the credit period and already matured, so the outstanding is not 5 billion, the overall outstanding within the credit period plus the overdue is bigger than that. Manish Adukia - Goldman Sachs/Mumbai Thank you for clarifying. All the best. Sunita – Moderator Thank you very much Mr. Adukia. The next question comes from Mr. Vivekanand from Ambit Capital/Mumbai. Mr. Vivekanand, you may ask your question now. Vivekanand Subbaraman – Ambit Capital/Mumbai Thank you for the opportunity. So the first question that I have is on the capacity, in any given quarter what is the maximum number of co-locations that you are capable of rolling out and is that going to be a constraint at all if Voda fone Idea decides to aggressively expand population coverage like it has suggested and is there a theoretical limit in terms of let us say 20,000 to 30,000 co-locations per quarter that your field force is capable of deploying that is one . Secondly, as far as the balance sheet is concerned I see that your debt excluding lease liabilities is down to only Rs.1 ,000 Crores now that you are collecting money on time from Vodafone as well as the Company is clearing past dues with you when can we expect the balance sheet to get more optimized and leverage to come back so that investor get amplification of returns like they do with other global tower companies? Thank you. Prachur Sah – Managing Director & Chief Executive Officer – Indus Towers Limited So let me answer the first question and then I will ask Vika s to answer the second question. S o, from a capability of co -location deployment see once we deploy our 1T tower, co-location deployment is actually very straightforward. So from a technical limit point of view I think there will be no limit from our side in terms of co-location deployment. Our turnaround time and our spread of the field force is enough that we can meet all the requirement s of co-location orders that come from the customer . So I think from a co - location deployment point of view the technical limit of execution is not much of a constraint. I think as long as we have th e first tenant available and the tower is there co -location deployment is quite quick and it is not limited because we have field force managing the towers that are operating anyways so that is not a constraint from our side. Now I will ask Vikas to answer your second question. Vikas Poddar – Chief Financial Officer – Indus Towers Limited Vivekanand I think as far as the debt is concerned clearly there is a reduction in this quarter Q3 and that is a function of good cash flow that we have generated in this quarter as a result of better collections as well as our capex cash flow has been lower a nd as part of our normal cash management we have s ort of repaid some of our short -term loans etc. So I do not see this first of all as a very long-term situation this is basically just part of our normal cash management. Coming to the long-term view on how the balance sheet can be optimized, clearly we know that there is a lot of headroom. In the past , as I had explained why we were not very keen about increasing debt levels was because there was lot of uncertainty that we were facing. Now with the uncertainty reducing I think clearly there will be more appetite, as we go along there will be capital allocation decisions, etc., that will be made in the next couple of months and quarters and that will probably improve the leverage situation and the ba lance sheet optimization. So I think give us couple of months and quarters and then we will see how this goes, but currently we are just coming out of a very uncertain phase with a very good collection in the Q3, Q4 sort of a time period. Vivekanand Subbaraman – Ambit Capital/Mumbai Thank you very much for your elaborate answers and all the best.

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 8 - Sunita – Moderator Thank you very much Mr. Vivekanand. The next question comes from Mr . Sumangal Nevatia from Kotak Securities/Mumbai. Mr. Nevatia you may ask your question now. Sumangal Nevatia – Kotak Securities/ Mumbai Good afternoon and thanks for the chance. My first question is on our new venture for EV charging. I appreciate it is very early stage but just want to understand from a capital allocation point of view what sort of hurdle rate do we look at when we evaluate and decide to pilot and then maybe eventually sign contracts on this business? Prachur Sah – Managing Director & Chief Executive Officer – Indus Towers Limited Again to be honest hurdle rate once we are l ooking at the project on a case -to-case basis we are evaluating that but I think the hurdle rate is going to be in line with what our overall business is. Vikas Poddar – Chief Financial Officer – Indus Towers Limited Again Sumangal I think I just want to probably add to what Prachur said, I think broadly we have made this announcement it is early stage, obviously we are aspiring for let us say mid to maybe somewhere in the double digits so mid to high sort of double digit returns, but currently the business scale is very small to really talk about returns , because currently we need to first develop this business and see where it goes and see the competitive si tuation in the market and so on, but obviously aspirationally the returns are expected to be double digit. Sumangal Nevatia – Kotak Securities/ Mumbai I understand and since we are kind of doing some sort of pilot do we have any sense on the time of the business any external agency we would have deployed before we get into this business? Prachur Sah – Managing Director & Chief Executive Officer – Indus Towers Limited No, as I said I think very early stage. I think we are learning as we are doing. I Tare certain parts of pilot where we are primarily focusing on technical feasibility and our ability to deploy so again as I said as we go forward we will learn more. Sumangal Nevatia – Kotak Securities/ Mumbai Got it. One small clarification. I do not know if this was discussed as I got disconnected. On the dividend since we are now coming out of the bad phase when all the bad debt provisions are largely behind what should we expect with respect to dividend payout, do we expect to get back to old ways paying out almost all of free cash flow eventually? Vikas Poddar – Chief Financial Officer – Indus Towers Limited I think the cash flow situation certainly has improved significantly compared to what we were seeing in the past, so with this sort of visibility we will certainly evaluate the whole situation at the year end, which is just two, three months away and I am sure the Board will then take a call on the dividend also . We are fully aware that no dividend has been paid in the last two years although we did a buyback in Q2 and distributed some cash, but clearly by year end if we are still in a very strong cash flow situation , I am sure the Board will evaluate all this. Sumangal Nevatia – Kotak Securities/ Mumbai Got it. Thank you and all the best. Sunita - Moderator Thank you very much Mr. Nevatia. The next question comes from Mr. Sanjesh Jain from ICICI Securities/Mumbai. Mr Jain you may ask your question now.

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 9 - Sanjesh Jain - ICICI Securities/Mumbai Good afternoon . T hanks for taking my question . C ouple of them are bookkeeping questions. I will start with them . F irst on the provision reversal your note to account says that this quarter had the provision reversal of the collection of 29 billion, in your opening statement you suggested 30.2 billion so what is the difference between the two so I am referring to Notes to Account 11C? Vikas Poddar – Chief Financial Officer – Indus Towers Limited Hi Sanjesh so it is basically the 29 billion is the provision reversal on account of the monetization of security and also some of the past collection and apart from that there has been some other adjustment also so the 29.6 that you see in the notes to accounts relates to one customer and a specific transaction, but in the overall books the provision reversal has been 30 billion or thereabout, so there are other TDS -related adjustments and so on, so the total number is 30 billion so that is the small difference that we are explaining. Sanjesh Jain - ICICI Securities/Mumbai Second on the trade re ceivable, if I look at quarter -on-quarter trade receivable has gone from 56 billion in last quarter end to 73 billion in this quarter. What has led to the sharp increase in the trade receivables? Vikas Poddar – Chief Financial Officer – Indus Towers Limited So in the accounting books as we write back the provision because the balance sheet shows the receivables net of provision so as we writeback the provisions that goes and sits in the trade receivables. Sanjesh Jain - ICICI Securities/Mumbai Money was received in January. Vikas Poddar – Chief Financial Officer – Indus Towers Limited That is right it is just a timing issue. Sanjesh Jain - ICICI Securities/Mumbai That is a timing issue and that is very clear now. The next question is on the capex. We had one of the highest tenancy addition and fixed number was quite muted what explains this capex? Vikas Poddar – Chief Financial Officer – Indus Towers Limited No, it is just the sor t of procurement sort of a time frame. Obviously the procurement for th e rollouts that we have done were much earlier and then there is also the adjustment on account of the Supreme Court ruling wherein we are now able to avail the CENVAT credit on towers and to that extent we have also reversed some capitalization to the extent of 6.6 billion that we have explained in the notes. Sanjesh Jain - ICICI Securities/Mumbai Got it and followup question on the tenancy addition I do not know if you can help us understand or ascertain what is your existing run rate for market share in the Vodafone’s rollout, even on the market share we had earlier if not the number? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited I think we are currently the dominant market share for all our customers that are rolling out and I think we will continue to do so.

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 10 - Sanjesh Jain - ICICI Securities/Mumbai I know we have a dominant market share, Do we also have a dominant incremental market share? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited Yes. Sanjesh Jain - ICICI Securities/Mumbai That is very clear . One last question on the EV infrastructure business. The tower business was quite straight forward for us, we used to get order and based on the order we used to put the tenancy or tower, but in case of EV we need to choose the location and then look for a potential business out of it, are we building the exper tise, are we building a different business unit for it because though on the face of it the business most looks same but the business economics are very different. Will it be run by a separate team as a different BU? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited See again I think since there have been a few questions I would like to clarify see our primary driver of the busi ness remains the tower business. But I think EV is at an early stage of course . We will maintain that difference so that the tower business does not suffer so I think it is a separate business unit, separate team that is going to drive the business and as you mentioned earl ier I think there are certain things, which are different especially on the market side that is why our selection of contracts or the deals that we make with customer will be very prudent in terms of making sure that we are close to the business model that we are doing with towers. I think it is something that will be new to the industry as well so we will be very cautious on that one but it is a separate business, yes. Sanjesh Jain - ICICI Securities/Mumbai You mentioned that you had one of the highest IBS addition in this quarter can you help us understand how big has it become, what is the opportunity are we looking at it, along with that can you also help us understand the effort what we are doing towards building the micro cell towers where are we in that ecosystem now, I know we do mention the leaner towers but are they same as micro towers? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited So let me first answer the IBS question. I think you know like I mentioned in my speech at IBS for last year we focused a lot on the tower addition this year we put a specific effort on making sure that our team , our ways of working , our processes, and even the technology that we are deploying in IBS that now includes 5G right . We put a robust team and drive behind it and that has resulted in a very strong uptake and our ability to acquire sites for IBS even in larger cities, so I think that has been the reason behind the IBS update and I think that has proven to our customers that we can deliver right so we are aggressively present in this space and we will continue to expand. As far as the micro cells a nd the lean sites are concerned, I think Tejinder can correct but it is a little bit of a customized solution based on what the customer is asking for any given site and I think we have the capability to provide those customized solutions as the requirement comes. Tejinder Kalra – COO – Indus Towers Limited Yes pretty much right Prachur as you said. There are solutions required for the customer’s need. It could be the small 3 m eter, 6 meter, 9 meter kind of whole structures or the single one sector, two sector depending upon their coverage requirements that is how the micro cell structures are built up, but pretty much we have the solutions to cater to all the needs. Sanjesh Jain - ICICI Securities/Mumbai Got it. That is pretty much clear now. On the loss we are making on the energy in fact it continues to remain sticky though the diesel proportion has been coming down and the renewable proportion is going up but the percentage loss has been sticky can we expect some reduction starting FY2026 as a percentage of energy margin losses?

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 11 - Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited That is a good question. if you see quarter-on-quarter, there is some improvement but I think there lot of effort has been going there. The reason sometimes you do not see the impact of let us say the solar sites or something coming in because it is a different revenue model so the solar revenue gets captured in service revenue not in the energy so you may not see that impacting the energy margin per se, but it is there in service revenue. So if you bring that here the margin definitely improves. So I think overall on the energy side while I think there is still a lot of work to be done some of them always remains a timing issue in terms of how the energy margin looks like but I believe as we move forward as we put in more and more efforts on renewable, I think these numbers will continue to improve. Sanjesh Jain - ICICI Securities/Mumbai Thank you. I got one last question on the rental per tenant, which has grown 0.7% sequentially while our tenancy sharing has been improving, which should have ideally led to some dilution in the rental per tenant as the ten ancy sharing goes up , was it a timing issue and that should start showing up from Q4 or do you think the loading will still be driving this rental per tenant going up even in the ensuing quarters? Vikas Poddar – Chief Financial Officer – Indus Towers Limited So Sanjesh let me explain this . As far as the ARP T metric is concerned like we have explained in the past also there are several variables and moving parts that impact th is metric, but particularly referring to Q3 movement over last quarter there is another element, which is basically the seasonality right , so Q3-Q4 generally are seasonally good quarters for Indus Towers in terms of weather, the electricity availability etc. So we have better up time, lower diesel cost and so on and sometimes better uptime also translates into sort of better ARPT, so particularly for this quarter while there are other moving parts also, but the single biggest factor is also the fact that there is a seasonality benefit. Sanjesh Jain - ICICI Securities/Mumbai Got it but structurally as the tenancy sharing goes up the ARPT should slightly come down right? Vikas Poddar – Chief Financial Officer – Indus Towers Limited Yes to some extent you are right because there is always a tenancy discount that kicks in so ARPT logically should come down but like I said we cannot attribute the movement in ARPT to single factor, there are mix of towers , there is ten ancy, there is renewal discount, there is loading, there is 5G, there is seasonality, so there are several factors so something or the other keeps playing in this little movement that we see every quarter. Sanjesh Jain - ICICI Securities/Mumbai Got it one probably last question . In the opening remark you said that now the loading is catching up and we are nearing the 5G tenancy rollout in how many quarters do you do you think you will start seeing the 5 G standalone tenancy being roll ed out by the operator? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited To be honest I can not answer that question right now. I think let us see how the proliferation of 5G is and then we come back , it is too early to say if you are going to see something like that happening soon. Tejinder Kalra – COO – Indus Towers Limited This is something that is driven by the data optic at the operator end and how they want to cater to that data need so I think it is not easy to kind of predict when the 5G standalone things will be coming in, but the rollout 5G in any case has also slowed down a little bit. Sanjesh Jain - ICICI Securities/Mumbai Given the FWA rollout by Airtel, will that help in adding more tenancies?

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 12 - Prachur Sah – MD & CEO – Indus Towers Limited No, I think the 5G coverage will cover that part. Tejinder Kalra – COO – Indus Towers Limited FWA has got nothing to do with tenancy; it is the 5G network and the last mile reach of 5G into the homes is what FWA caters to so they are using the on air capacity and FWA is the last mile element there. Vikas Poddar – Chief Financial Officer – Indus Towers Limited I am sorry there is a queue building up Sanjesh so maybe we can discuss offline if there is anything more and you come back in the queue. Sanjesh Jain - ICICI Securities/Mumbai Thanks for offering me this opportunity. Sunita - Moderator Thank you very much Mr. Jain. The next question comes from Mr. Arun Prasath from Avendus Spark/Chennai. Mr Prasath you may ask your question now. Arun Prasath - Avendus Spark/Chennai Thank you for the opportunity. Good evening everyone so my first question is on the anchor tenant characteristics with Vodafone no longer a shareholder are they still anchor tenant or what are the benefits that we had because of the anchor tenancy we tend to have or tend to lose because of this? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited If I am to understand your question correctly I do not think shareholder and anchor tenant have any correlation per se. I think anchor tenant is somebody who makes the tower, gives us the order of the tower and brings the initial rollout when the tower is being built that becomes the anchor tenant, so shareholding and anchor tenant have no correlation. So if we make towers for VIL as per their request and it is a new tower they would become the anchor tenant. If we do it for Airtel they will become the anchor tenant or for Jio so I think anchor tenancy and shareholding have no relation. Vikas Poddar – Chief Financial Officer – Indus Towers Limited Just to add commercially there is no difference Arun if that is what you are trying to understand. Arun Prasath - Avendus Spark/Chennai But we will be still building towers for Vodafone if they request? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited If there is a need for them to build new towers and the existing towers or co-locations do not serve the purpose then we will have a look at it because we have to h elp them with network expansion, of course our primary aim is to support as much as co-location as possible but if there is a network expansion requirement we will continue. Arun Prasath - Avendus Spark/Chennai Right and now that we are finally fully out of the bad debts and the receivables issue in future if this kind of a situation repeats what do we have where the things can play differently, do we have any plan or any levers to tackle the same issues in a different manner in the future?

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 13 - Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited So I think you are asking something which has not happened so I cannot give you a response but I think one , two years ago when we were having the discussion I think we were quite confident that we will be in the situation we are in today. So I think the patience has paid off and we are a point where we are getting our dues collected and we are also participating in network expansion so as the situation comes based on the kind of situation the Management and the Board will act accordingly and make sure the interest of the company is protected so that is the answer I can give you. Arun Prasath - Avendus Spark/Chennai Why I am asking you is in the past we had some kind of security in terms of their interest in our stake or shareholding pattern, which is no longer will be there so initially we had that cushion probably going forward we will not have so that is the basis behind the question but nevertheless because I think you are also actively pursuing the business from the BSNL expansion also is it the right understanding? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited Yes I think wherever available we are serving BSNL as a customer and I think we will continue to do that . I think BSNL is an important customer for us. Arun Prasath - Avendus Spark/Chennai So typically the government PSUs being counterparts again the receivable issues kind of props up we have seen it in the multiple other sectors so what kind of a framework we have to safeguard the risk coming from these future businesses , any thoughts on that? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited So I think just to give you a sense that BSNL is not just future business we actually have existing tenancies with BSNL and we have been working with them for quite some time and we have an MSA under which we operate . Of course the issues that come across we handle on a case -to-case basis so BSNL is not just future business . W e have existing tenancy with BSNL and we have a relationship where we work with them to see that we get paid on time and I think we have seen some good progress in the last one year in this front as well. Arun Prasath - Avendus Spark/Chennai Right any indication from their side how their roll outs looks like and what kind of business you expect in terms of relatively with respect to say Vodafone’s business versus Bharti’s business, some colour on that please? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited No, I cannot compare with the others. All I know is that BSNL is actively looking to upgrade their network so all our tenancies are getting, wherever they are asking we are providing the upgrades to 4G and wherever there is a co -location requirement we are making sure that we are serving them and we are actively working with them to make sure that any co -locations that they are offering in the market we are there and trying to capture that market. Arun Prasath - Avendus Spark/Chennai Also regarding the investments in the energy business not the separate one but within the tower energy business so far I think if you can broadly split the capex that we have spent in the last three years on the core business versus what we have invested in the energy that will help us in understanding the magnitude of the investment we have made? Vikas Poddar – Chief Financial Officer – Indus Towers Limited Arun basically energy is also part of our core business . Because in the end while we report the two revenues separately but in the end they are one business right. So broadly if you are referring to the replacement capex as we have clarified in the past roughly

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 14 - 20% of our capex goes in replacement and then roughly 5 to 10% in other things like IT and a few other initiatives but broadly we really do not track energy because for example if we are replacing a battery whether that is a replacement capex or energy capex how do we really classify that so we really do not differentiate energy capex. Arun Prasath - Avendus Spark/Chennai So put it in another way, so we are spending close to Rs 800 Crores of maintenance capex roughly every year so this energy capex will go into the maintenance one? Vikas Poddar – Chief Financial Officer – Indus Towers Limited Yes our replacement capex is more than Rs 800 Crores so any energy capex is pretty much part of the replacement. Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited But I think you keep calling it energy capex , it is not energy capex that is required to provide energy and provide the uptime so I do not think we should look at in that way , it is an energy capex. Providing power is our core business so I do not think energy capex should be looked at in that sense. Arun Prasath - Avendus Spark/Chennai Anything you can call out on the investments in the renewables within this? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited No, I mentioned to you. I think first of all in the past we have rolled out about 28,000 solar sites so I think that is part of the upgrade capex that is there and in future besides solarizing the ir individual sites we are looking at investment in green open access where I mentioned in my talk that we have signed a PPA with a strategic partner of 130 megawatts at a 26% equity so that are the two elements I could highlight from a renewable point of view. Arun Prasath - Avendus Spark/Chennai Alright. Thanks for answering all the questions. All the best. Sunita - Moderator Thank you very much Mr. Prasath. Moving to the next participant we do have a followup question from Mr. Vivekanand from Ambit Capital/Mumbai. Mr. Vivekanand you may ask your question now. Vivekanand Subbaraman - Ambit Capital/Mumbai Thanks for the followup opportunity. As per the D oT India has around 8 17,000 towers now you have 235,000 towers, Altius has around 250 k towers and BSNL has 70,000, so who has the industr y’s remaining towers and are there any consolidation opportunities left in the tower space for you presently. Secondly can you talk about the size of the revenue pools that are there in the small cells and lean tower markets compared to the current macro tower opportunity that we are pursuing? Thank you. Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited Again I will try to see if I can answer this question. So you are asking is there any other major players from a tower point of view not that I am aware of right so I think we can look at the numbers again on what because DoT may have some numbers which are actually not radiating also right, so I think that could play a part in that number game, but I think the tower players you have listed out which seems to be correct and your second question was that besides macro what are the markets that we can participate in if that is what you were implying, so I think besides macro as I mentioned small cells , lean towers we have deployed close to 11,000 over the last couple of years. IBS portfolio is becoming stronger for us and I think we have started to become a supplier of choice for IBS for our major customer , and we continue to provide bespoke solutions as far as small cells are concerned based on customer requirements so I think these are the three ways we are looking at the market outside the macro market.

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 15 - Vivekanand Subbaraman - Ambit Capital/Mumbai Is there any quantification possible at all in terms of potential revenue opportunity maybe say broad ranges like 10% of current macro opportunity or 20%, 50% I do not know I am just asking if small cells, lean towers, IBS put together, can it be material for you or is it just very small and perhaps only the need is marginal? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited In our business where revenue is driven by the capex that is invested right I think these sites cost much lower than a macro tower, so when you start talking about a percentage of revenue I do not know what the percentage is we can have a look, but the materiality comes from the fact what role these solutions play in the customers network, so I think more than revenue I think it is important to look how they play the role in the customers network and we being the solution provider to meet all their customer network demands, so while in revenue because we are in a infrastructure industry and we get paid on the investment that we make the materiality may not look that great but it is a very critical element to provide the holistic solutions to our customers. Vikas Poddar – Chief Financial Officer – Indus Towers Limited Just to add Vivekanand I think while Prachur explained the rationale which is basically meeting the network solution requirements of the customer, revenue wise it is not material enough to be disclosed and that is why we do not talk about revenue numbers for each of these segments. It is a small number not really material to be talked about. Vivekanand Subbaraman - Ambit Capital/Mumbai Fair enough no I was not just referring to the current number I was thinking more from a 3 -to-5-year perspective that can this be 10% or 20% of your business on aggregate? Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited Again it is a good return business. We have been participating. I think the leaner sites have a better return but I think 3 to 5 years down the line as the urban territory expands and the urban requirements are there I believe these opportunities will become bigger. How big that will become it depends on how the network expands, what are the spectrum, what are the other issues associated with it but it is an important element from a network point of view. Vikas Poddar – Chief Financial Officer – Indus Towers Limited So Vivekanand just to add to what Prachur is saying. I think this small cell or IBS or micro site solutions is more from a network densification and network capacity need focused kind of s olutions as the networks mature, as the data capacity grows or higher technologies come in there will definitely be a need of such kind of solutions, which will increase and therefore probably over time it could become material, but for today these numbers look considerably small because the macro sites are able to cater to a large part of the need of the operator and that is the reason why we are in this space already so that we are ready once the densification begins to happen. Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited But I just want to clarify no matter how small the contribution of this is in revenue and revenue share. From other competitors point of view, Indus has still a significant share in this market right. So if you look at IBS market overall I think we are a large player in that space. Vivekanand Subbaraman - Ambit Capital/Mumbai Yes this is very helpful. Thank you for the perspective and all the very best. Sunita - Moderator Thanks very much Mr. Vivekanand. At this moment, I would like to hand over the call proceedings to Mr . Prachur Sah for the final remarks.

Transcript of Indus Towers Limited Third Quarter ended December 31, 2024 Earnings Call Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Indus Towers Limited. - 16 - Prachur Sah – Managing Director & Chief Executive Officer- Indus Towers Limited Thank you. In summary, we are pleased to have delivered strong operational performance in Q3 reaffirming our execution capabilities and customer cent ric approach. O ur constant engagement with a major customer has helped us collect most of the overdues and we are confident of clearing the balance amount . We expect the ongoing network expansion by our major customers to provide us with ample opportunities to grow. We endeavor to ride this growth journey in a sustainable way and create value for all our stakeholders including shareholders, customers, and partners. Have a good day. Thank you. Sunita - Moderator Ladies and gentlemen this concludes the conference call . You may now disconnect your line s. Thank you for connecting to audio conference service from Airtel and have a pleasant evening.