Cable NewsLatest NewsSpotlight

Delton Cables Wins 178 Cr. Domestic Order from ‘Top EPC Companies’

Delton Cables logo

Faridabad-based Delton Cables Ltd. has secured an order valued at Rs. 177.83 crore from ‘top EPC companies’ for the supply of power cables. This is a major order win for Delton, which had reported a strong financial performance during FY-24.

Order to be Fulfilled over 2 years, Major Win for Delton

Delton Cables has secured this order under Revamped Distribution Sector Scheme (RDSS). The company will fulfil this order over a period of 2 years.

This order is a major win for Delton Cables in terms of value, since it is about 50% of the company’s market capitalisation which currently stands at Rs. 354.24 crore.

Delton: Maximising Utilisation, Installing Machinery in Leased Facilities

In its investor presentation for the Q4 FY-24 results, Delton Cables mentioned that the company will be adopting an OpEx based approach rather than a CapEx based one to maximise asset utilisation. The company seeks to ‘sweat’ its assets to maximise production. Delton mentioned that its asset utilisation stood at 76% during FY-24 as compared to 58% during FY-23.

Apart from this, the company mentioned that it plans to install ‘top-tier’ machinery in leased facilities. Through this approach, Delton seeks to focus on Operating Expenses (OpEx) rather than Capital Expenditure (CapEx). The company plans to “…allocate resources gradually and systematically employing an asset-light approach.

Delton’s Order could be Possibly Fulfilled by Outsourced Manufacturing

Given the scale of Delton’s order, people in the cable industry have expressed a strong possibility of it being executed by outsourcing production for the order. Further, based on the company’s stand on utilising leased facilities, it can be speculated that power cables for the aforementioned order might be manufactured at such facilities.

About Delton Cables Ltd.: Delton Cables, established in 1948, manufactures various types of cables including power & control cables, instrumentation cables, telephone cables, building wires, and others. The company also manufactures switchgear and provides structured cabling solutions and fiber networking solutions.