Company Overview

Veto Switchgears and Cables Limited was originally incorporated as a Partnership Firm on June 26, 2003, under the name and style "Veto Industries". Subsequently, on June 20, 2007, the Partnership Firm was converted into a Private Limited Company under the name and style "Veto Switchgears and Cables Private Limited". The Company name was further changed to the present name `Veto Switchgears and Cables Limited` on August 3, 2012. Veto Switchgears is part of Jaipur, Rajasthan-based Gurnani Group, which has interests in wires & cables, electrical accessories, real estate, and hotels.

Veto is the first company to produce ISI mark electrical accessories in India. It is ISO 9001:2008 Certified and manufactures all types of cables and housing wires. The company sells products under the brand names of Veto and Vimal Power, having established itself as a prominent player in the electrical equipment industry.

Business Segments and Products

Veto Switchgears and Cables Limited is an India-based company engaged in the manufacturing of wires and cables, electrical accessories, and also deals in LED lighting, compact fluorescent lamps (CFLs), and fans. The Company operates through three primary segments: Wire and Cables, Lighting & Fittings, and Accessories & Others.

The company offers a comprehensive range of electrical products, including electrical accessories such as Vyoma and Power modular switches; MCBs, circuit breakers, distribution panels, isolators, AC boxes, and extension cords. Additionally, it provides various types of wires and cables, ceiling, wall, pedestal, and table fans, along with slim LED panels, concealed lights, deep lights, spot lights, flood lights, street lights, rope lights, LED bulbs and tube lights, wall and track lights, and surface panels.

Manufacturing and Operations

The company's manufacturing plants in India are located at Haridwar and Mumbai. These facilities continuously produce all products with a focus on excellence and precision in the electrical industry. Veto Switchgears & Cables maintains high-quality standards and has been consistently expanding its product portfolio to meet diverse customer requirements across various electrical applications.

Financial Performance

Recent Quarterly Results (Q4 FY25)

Net profit of Veto Switchgears & Cables rose 255.66% to Rs 7.54 crore in the quarter ended March 2025, as against Rs 2.12 crore during the previous quarter ended March 2024. Sales rose 12.26% to Rs 89.18 crore in the quarter ended March 2025, as against Rs 79.44 crore during the previous quarter ended March 2024.

Annual Performance (FY25)

For the full year, net profit rose 23.29% to Rs 22.13 crore in the year ended March 2025, as against Rs 17.95 crore during the previous year ended March 2024. Sales rose 0.10% to Rs 300.38 crore in the year ended March 2025, as against Rs 300.09 crore during the previous year ended March 2024.

Key Financial Metrics

- Market Capitalization: ₹209.67 Cr (as of May 29, 2025)

- P/E Ratio: 11.69

- 52-week High: ₹196

- 52-week Low: ₹92.60

- Return on Equity: 8.35% (over last 3 years)

- ROCE: 11.1%

Financial Strengths and Key Highlights

The company demonstrates several positive financial characteristics. It is almost debt-free, with a reasonable debt-to-equity ratio of 1%, which signals a healthy balance sheet. This strong balance sheet position provides the company with financial flexibility for growth initiatives and operational requirements.

However, there are some areas that require attention. The company has high debtors of 179 days. The dividend payout has been low at 9.58% of profits over the last 3 years, indicating that the company retains most of its earnings for reinvestment rather than distributing them to shareholders.

Market Position and Industry Standing

VETO Switch Gears And Cables Ltd (VETO) belongs to the Industrials sector and the Electrical Components & Equipment sub-sector. The company's unique position as India's first ISI-mark electrical accessories manufacturer gives it a competitive advantage in the market, particularly in terms of quality assurance and regulatory compliance.

The electrical equipment industry in India continues to benefit from infrastructure development, urbanization, and increasing electrification projects. Veto's diversified product portfolio across wires, cables, electrical accessories, and LED lighting positions it well to capitalize on these growth opportunities. The company's association with the established Gurnani Group provides it with additional business synergies and operational support, while its ISO certification and ISI mark credentials enhance its credibility in the marketplace. With manufacturing facilities strategically located in Haridwar and Mumbai, Veto is well-positioned to serve both northern and western Indian markets efficiently.