This Solar PV cable stock deals in the business of manufacturing and sale of Cables including telecommunication cables, FRP rods or glass rovings, and Engineering, Procurement & Construction business, in focus after they plan to expand its capacity by approx 50 percent in FY26.
Share Price Movement
With a market capitalization of Rs. 1,870.66 Crores, the shares of Vindhya Telelinks Limited were down by 5.4 percent in the day’s trade touching a day’s low of Rs. 1,576.45 per share.
The stock reiterated from the day’s low and was trading at Rs. 1,583.12 which is 5.00 percent lower than the previous closing price of Rs. 1,666.45 apiece. It has delivered a negative return of 40 percent which has underperformed the Nifty Index in the past year.
What happened
The company’s stock is in focus after they announced the capacity expansion of Solar photovoltaic (PV) cable from the current capacity of E-Beam crosslinked of 67,000 KMs per year to a proposed capacity expansion planned to 1,03,000 KMs per year which is an increase of 53.73 percent or 36,000 KMs per year.
Apart from that, E-Beam crosslinked Solar PV cables, they plan to set up Electrical Submersible Pump Cables with an annual capacity of 2,000 KMs, and Coaxial Cables with an annual capacity of 6,000 KMs are proposed to be implemented.
The capacities are expected to be fully operational by the end of FY26 with an estimated capital outlay of Rs. 55.10 crores. For these initiatives, the funding is proposed through a combination of supplier’s credit or term loan and Internal Accruals.
Rationale behind the expansion
The rationale behind the capacity expansion is to overcome the constraint of production capacity to serve the continued strong demand for Solar PV cables focused on the renewable energy sector, Electrical submersible pump cables, and coaxial cables domestically and internationally. The Solar PV cable demand is expected to remain constant as the targeted Solar power generation capacity to 280 GW by 2030 as per the Indian Government.
Q3FY25 Financial Highlights
The financial results for the quarter ending December 2024, Its consolidated revenue from operations has declined by 4.30 percent year on year from Rs. 1,083.73 crores in Q3FY24 to Rs. 1,037.12 crores in Q3FY25 and increased by 8.86 percent quarter on quarter from Rs. 952.66 crores in Q2FY25.
The company’s consolidated net profit has declined by 43.14 percent year on year from Rs. 68.75 crores in Q3FY24 to Rs. 39.09 crores in Q3FY25. As compared to Q2FY25, the company’s net profit has increased by 60.5 percent quarter on quarter from Rs. 24.35 crore.
Business Segments
The company earned its revenue from operations from Cables which contributed around 19.77 percent and the remaining 80.22 percent from Engineering, Procurement, and Construction (EPC) as of the December 2024 quarter.
Company Overview
Vindhya Telelinks was established in 1986 and is a leading Indian manufacturer and supplier of jelly-filled and optical fiber telecommunication cables. They also offer turnkey solutions for cable installation and related services. They serve major clients like BSNL, MTNL, and Indian Railways.
Written By Santhosh S
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