Bad debt provisions on Voda Idea payment delays drag Infratel Q4 net: Analysts

New Delhi: Tower infrastructure provider Bharti InfratelNSE -8.49 %’s fiscal fourth quarter performance was predominantly dragged due to provisioning for bad debt, arising from likely delay in payments, mainly from Vodafone IdeaNSE -8.05 %, analysts said. On Friday, Infratel stock plunged 10 per cent in late trade to Rs 149.55 on the BSE.

“While rent and employee costs increased 4 per cent-6 per cent YoY, other costs jumped 59 per cent YoY and 63 per cent QoQ likely due to higher provisions for doubtful debt with a delay in payments,” brokerage firm CLSA said in a report.

IIFL Securities believes the adjustment in the company’s earnings pertains to estimated Rs 200 crore bad debt provision pertaining to Vodafone Idea largely.