Vindhya Telelinks’ Q2 FY-25 Financials: Revenue up 11%, PAT Down 48% YoY
Vindhya Telelinks Limited [NSE: VINDHYATEL, BOM: 517015], an Indian cable manufacturing company has announced its financial results for Q2 of FY-25.
Vindhya Telelinks Receives Stable Credit Ratings from CARE
These credit ratings signify that the company can repay debt on time and carries low credit risk. Short-term ratings consider a period of one year or less while long-term credit ratings define a period of more than one year.
Vindhya Telelinks’ Standalone Financial Numbers for Q2 of FY-25
Vindhya Telelinks reported a standalone revenue of Rs. 952.67 crore for Q2 of FY-25 and a Profit After Tax (PAT) of Rs. 30.78 crore for the same period.
Vindhya Telelinks’ Q2 FY-25 Consolidated Financial Numbers
YoY Comparison of Vindhya Telelinks’ Financials: Q2 FY-25 vs. Q2 FY-24
On an Year-over-Year (YoY) basis, the company’s top line jumped by 10.52% to Rs. 952.67 crore during Q2 FY-25 from its Rs. 862 crore revenue, clocked for Q2 of FY-24. On the other hand, Vindhya Telelinks’ Q2 PAT decreased by 47.89% YoY to Rs. 24.36 crore in FY-25 from Rs. 46.75 crore in FY-24.
Following PAT, the company’s Earning Per Share (EPS) fell to Rs. 20.55 during Q2 of FY-25 from Rs. 39.45 during Q2 of FY-24.
QoQ Analysis of Vindhya Telelinks’ Financial Results: Q2 FY-25 vs. Q1 FY-25
Quarter-over-Quarter (QoQ), Vindhya’s revenue from operations grew by 14.31% from Rs. 833.40 crore, which was logged during Q1 of FY-25. However, the company’s PAT tumbled by 17.28% from Rs. 29.45 crore, which was earned during Q1 of FY-25.
YoY Financial Analysis of Vindhya Telelinks’ Q2 Segmental Revenue: Q2 FY-25 vs. Q2 FY-24
Cables: The company’s revenue from this segment jumped to Rs. 196.41 crore during Q2 of FY-25 against Rs. 150.42 crore in Q2 of FY-24. This showed a YoY growth of 30.57% in the company’s quarterly Cables segment revenue.
The company mentioned in its investor presentation for its H1 FY-25 financial results that despite facing challenges in global demand, Vindhya Telelinks saw an HoH (Half year over Half year) 26.7% growth in cable sales. Further, the company stated that it has been paying attention to high-value segments while accounting for market volatility. Specialty cables has also been an area of focus for the company.
Engineering, Procurement & Construction (EPC): The EPC segment of the company contributed Rs. 760.59 crore to the company’s total revenue during Q2 of FY-25 against Rs. 719.53 crore in Q2 of FY-24. This shows an increase of 5.71% in the company’s EPC segment revenue on YoY basis.
In recent quarters, EPC segment has emerged as the largest contributor to the company’s top line. In Q2 FY-25, the EPC segment accounted for 79.84% of the company’s total gross revenue*.
*Gross revenue refers to the sum of segmental revenues before the deduction of inter-segmental revenue.
Vindhya Telelinks’ Strong Order Book and Future Growth Plans
As of 30th September 2024, Vindhya Telelinks reported an order book of Rs. 7,124.5 crore. The company, in its investor presentation, highlighted a significant surge in demand within its specialty Cables segment, particularly from the railways and energy sectors.
Vindhya Telelinks will be expanding its presence both in domestic and international markets. The company plans a phased expansion of its manufacturing capacities to address the growing demand. However, specific details regarding the expansion were not disclosed.
Additionally, Vindhya Telelinks anticipates strong order inflows from 5G infrastructure projects and expects continued growth in demand for optical fiber networks, driven by rising investments in data centers and data-driven services.
About Vindhya Telelinks Limited: Vindhya Telelinks was formed as a Public-Private venture between Universal Cables Limited and the Madhya Pradesh State Industrial Development Corporation Limited. The company started production in 1986 from its plant at Rewa, Madhya Pradesh. Vindhya Telelinks Ltd. manufactures a wide variety of cables such as Optical Fibre Cables, Copper Cables, Power Cables, Solar Cables, and Telecom Fibre Accessories. The company has a substantial EPC portfolio.
