Vindhya Telelinks Ltd, incorporated in 1983, is a prominent player in manufacturing and selling cables (including telecommunication cables, other wires & cables, FRP rods/glass rovings) and the Engineering, Procurement & Construction (EPC) business. The company is a key manufacturer and supplier of jelly-filled telecommunication cables and optical fiber telecommunication cables. Its product portfolio includes all types of telecommunication cables, railway signaling and quad cables, solar photovoltaic (PV) cables, and connectorized cable products.
Headquartered in Udyog Vihar, P O Chorhata, Rewa, Madhya Pradesh, Vindhya Telelinks Ltd operates as part of the MP Birla Group. Over its four-decade journey, it has established itself as a significant entity in the telecommunications infrastructure sector.
Vindhya Telelinks Ltd operates primarily in two segments:
- Cable Segment: Focuses on the manufacturing and marketing of telecommunication cables, other types of wires and cables, and FRP rods/glass rovings.
- Engineering, Procurement & Construction (EPC) Segment: Undertakes and executes contracts and provides infrastructure-related services, often with material supply.
The EPC segment has emerged as the dominant revenue driver for the company, consistently contributing the bulk of Vindhya Telelinks' gross revenue. In Q3 FY24, this segment accounted for ₹945.85 crore, representing 86.29% of the company's gross revenue. This highlights the company's strategic emphasis on its EPC business, which encompasses a wide range of projects including telecom, Fibre-To-The-Home (FTTH), power, gas pipeline, and LED lighting solutions.
As of May 12, 2025, Vindhya Telelinks has a market capitalization of ₹1,536.94 Crore. The company is listed on the Bombay Stock Exchange (BSE) with the code 517015 and on the National Stock Exchange (NSE) with the code VINDHYATEL.
For the trailing twelve months, Vindhya Telelinks reported an operating revenue of ₹4,159.78 Crore and a profit of ₹203 Crore. The company has demonstrated outstanding annual revenue growth of 41%, significantly surpassing industry averages.
The company has shown mixed performance in recent quarters:
- Q1 FY25 (June 2024):
- Net Profit: Declined 49.95% to ₹29.45 crore (vs. ₹58.84 crore in Q1 FY24).
- Sales: Declined 2.05% to ₹833.40 crore (vs. ₹850.82 crore in Q1 FY24).
- Q2 FY25 (September 2024):
- Net Profit: Declined 47.89% to ₹24.36 crore (vs. ₹46.75 crore in Q2 FY24).
- Sales: Rose 10.52% to ₹952.67 crore (vs. ₹861.99 crore in Q2 FY24).
- Q3 FY25 (December 2024):
- Net Profit: Declined 43.15% to ₹39.09 crore (vs. ₹68.76 crore in Q3 FY24).
- Sales: Declined 4.30% to ₹1037.12 crore (vs. ₹1083.74 crore in Q3 FY24).
- Market Capitalization: ₹1,536.94 Crore (as of May 12, 2025)
- Trailing Twelve Month Revenue: ₹4,159.78 Crore
- Trailing Twelve Month Profit: ₹203 Crore
- P/E Ratio: 5.44
- P/B Ratio: 0.39
- Current Dividend Yield: 1.16%
- Return on Equity (3-year average): 6.07%
- Pre-tax Margin: 5%
- Debt-to-Equity Ratio: 8%
- Dividend Payout (3-year average): 8.41% of profits
- Promoter Holding: 43.5%
Stock Performance:
- 52-Week High: ₹3230
- 52-Week Low: ₹1160.30
- Revenue Growth (Last 5 years): 14.04% yearly rate (vs. industry average of 3.9%), indicating a superior growth trajectory.
Recent Developments:
The European Union has imposed a combined 8.3% duty on Vindhya Telelinks' optical fibre cable exports, effective from June 12, 2025. This development may impact the company's export revenues and overall profitability in the optical fiber cable segment.
Vindhya Telelinks presents several compelling investment considerations:
- Strong Industry Position: The company holds a robust position in the telecommunications infrastructure sector, particularly with its expanding EPC business, which aligns well with India's ongoing digital transformation initiatives and the growth in FTTH projects.
- Healthy Balance Sheet: A low debt-to-equity ratio of 8% signals a healthy financial position.
- Superior Growth: Demonstrated superior revenue growth compared to industry peers over the last five years.
However, potential investors should also note:
- Profitability Pressures: Recent quarterly results indicate some pressure on profitability, which warrants close monitoring.
- Low Dividend Payout: A low dividend payout ratio of 8.41% over the last three years suggests the company prioritizes reinvesting profits for growth rather than immediate shareholder distributions.
- Export Duty Impact: The new EU duty on optical fibre cable exports could affect future international revenue.
