The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kunal Vora - BNP Paribas, Research Division - Analyst
: Congrats for a good quarter. Sir, first is, how do you see the recent spectrum auction impacting the prospects of new tower additions? Do you think
that operators will be able to take care of the capacity requirements and there could be moderation in new orders? That's one.
And second one also just, first, so of the 3.2 lakh co-locations which you have right now, how many will be coming up for renewal in FY '22 and
'23? And have the discussions on renewal terms already started? Also with 1 of the operators facing funding issues, would you be open to negotiate
lower rentals? And also earlier, you are expecting 2.5% rent escalation annually to start somewhere in FY '23. Is that still a fair assumption? That's
it from my side.
Question: Kunal Vora - BNP Paribas, Research Division - Analyst
: Just that the current situation seems a little different compared to last time you faced a similar situation because at least at that time, the tenants
seemed to be financially better as compared to what they are right now, especially considering that like a large tenant right now is, I mean, they
might depend on some concessions even for their viability.
Question: Kunal Vora - BNP Paribas, Research Division - Analyst
: Sure, yes. And just on the 2.5% rent increase annually. Is it a fair assumption? Or right now, we still need to wait and see how the negotiations go?
Question: Neerav Dalal - Maybank Kim Eng Holdings Limited, Research Division - Analyst
: I was actually on mute last time. I have 3 questions. First is on the depreciation, we saw depreciation lower on a Q-on-Q basis this quarter. What
would be the steady state going ahead? That is number one.
Number two is that telcos have acquired spectrum in the last auction. Any benefits for us when the spectrum is deployed, that is number two.
And number three is, there was this announcement sometime back that the telecom department is allowing sharing of tower backhaul infrastructure
and Wi-Fi equipment. Anything for us in this?
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APRIL 23, 2021 / 9:00AM, INUS.NS - Q4 2021 Indus Towers Ltd Earnings Call
Question: Neerav Dalal - Maybank Kim Eng Holdings Limited, Research Division - Analyst
: So going ahead in terms of steady state, how should one look at depreciation?
Question: Neerav Dalal - Maybank Kim Eng Holdings Limited, Research Division - Analyst
: Thank you.
Question: Kunal Vora - BNP Paribas, Research Division - Analyst
: So a couple of questions, sir. Are you seeing any inflationary pressure on cost of constructing towers because certain commodities, like steel, have
seen a spike? And also, have there been any major design changes and such that cost of constructing a tower site, like I mean, over the last 4 or 5
years, have you seen any changes in the structure so that you can actually lower the cost of constructing towers?
Question: Kunal Vora - BNP Paribas, Research Division - Analyst
: Yes. Yes, that's very helpful. Just 1 last question, if I may. Can you talk about any new initiatives which you're pursuing. Some time back, there were
like news reports that Indus is considering hosting EV charging stations and creating that kind of infrastructure. Also, you talked about fiber in the
past. Anything which you can highlight? Also on the EV part, anything which you've done and any feedback that you can provide?
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