Icra cuts telecom tower industry outlook to negative from stable

Fearing payment delays from key telcos to continue in FY24, domestic rating agency Icra on Tuesday cut its outlook on the telecom towers industry to ‘negative’ from ‘stable’.

In a note, the agency said delays in payments by some of the key customers have elongated the receivables cycle for the telecom tower companies to more than 80 days in FY23.

The tower industry’s dependence on weaker telcos in terms of tenancies remains high at around 34 per cent. Thus, till the time there are liquidity pressures on such customers, the tower industry’s health is likely to remain affected, it said.