NELCO , a prominent player in the telecommunications sector, has achieved a significant milestone in its operational capabilities. The company has successfully obtained a National-level VSAT Virtual Network Operator Authorization, a development that promises to expand its service offerings and market reach.

Key Highlights

• New Authorization: NELCO has been granted a National-level VSAT Virtual Network Operator Authorization by the Department of Telecommunications.
• Scope of License: This authorization is an addition to NELCO's current Unified License.
• Operational Implications: The new authorization enables NELCO to function as a virtual network operator for VSAT services across India.

Expanding VSAT Capabilities

The newly acquired authorization significantly enhances NELCO's position in the VSAT (Very Small Aperture Terminal) services market. As a virtual network operator, NELCO can now offer VSAT services on a national scale, potentially reaching a broader customer base and exploring new market segments.

This development is particularly noteworthy in the context of satellite communications and remote connectivity solutions. VSAT technology is crucial for providing internet and communication services in areas where terrestrial networks are unavailable or unreliable, making it essential for various sectors including maritime, aviation, rural connectivity, and disaster management.

Strategic Implications

For NELCO, this authorization could translate into several strategic advantages:

1. Expanded Service Portfolio: The ability to operate as a VSAT Virtual Network Operator nationwide allows NELCO to diversify its service offerings.
2. Increased Market Reach: The national-level authorization opens up opportunities to serve customers across India, potentially leading to business growth.
3. Enhanced Competitiveness: This development may strengthen NELCO's position in the satellite communication market, allowing it to compete more effectively with other players in the industry.

The acquisition of this authorization aligns with the growing importance of satellite-based communication services in India's telecommunications landscape. As the demand for connectivity in remote and underserved areas continues to rise, NELCO's enhanced capabilities in VSAT services could play a crucial role in bridging the digital divide.

While the financial implications of this development are not immediately clear, the expanded operational scope is likely to have a positive impact on NELCO's business prospects in the medium to long term. Investors and industry observers will be keen to see how NELCO leverages this new authorization to drive growth and innovation in its VSAT service offerings.

Nelco Limited , a leading provider of network systems, has reported its financial results for the fourth quarter and full fiscal year ended March 31, 2025. Despite a year-on-year increase in revenue, the company faced challenges in profitability during Q4 FY25.

Q4 FY25 Financial Highlights

• Revenue: Nelco's consolidated income from operations for Q4 FY25 stood at ₹675.00 crore, showing a decrease from ₹816.10 crore in the same quarter last year.
• Net Loss: The company reported a consolidated net loss of ₹41.00 crore in Q4 FY25, an improvement from the ₹61.00 crore loss recorded in Q4 FY24.
• Profit Before Tax: Nelco's profit before tax (PBT) for the quarter was ₹13.00 crore, down from ₹81.00 crore in the corresponding quarter of the previous year.
• Deferred Tax: The company reported a deferred tax of ₹15.00 crore for the quarter.

Full Year FY25 Performance

For the full fiscal year 2024-25, Nelco's financial results showed:

• Annual Revenue: The consolidated income from operations reached ₹3,048.70 crore, compared to ₹3,203.00 crore in FY24.
• Net Profit: The company recorded a net profit of ₹95.30 crore for FY25, a significant decrease from ₹236.70 crore in the previous fiscal year.
• Earnings Per Share: The basic and diluted earnings per share for FY25 stood at ₹4.18, down from ₹10.37 in FY24.

Dividend Announcement

Despite the challenging year, Nelco's Board of Directors has recommended a final dividend of ₹1.00 per share (10%) for the financial year ended March 31, 2025. This dividend is subject to approval by shareholders at the upcoming Annual General Meeting.

Corporate Developments

Nelco also announced several corporate actions and appointments:

1. Statutory Auditors: The Board approved the re-appointment of S.R. Batliboi & Associates LLP as Statutory Auditors for a second term of five consecutive years.

2. Secretarial Auditors: Bhandari & Associates, Practicing Company Secretaries, have been appointed as Secretarial Auditors for a period of 5 consecutive years commencing from FY 2025-26.

3. Internal Auditors: Aneja and Associate, Chartered Accountants, have been re-appointed as Internal Auditors for the Financial Year 2025-26.

4. Corporate Guarantee: The Board approved a corporate guarantee of ₹45.00 crore in favor of IDFC Bank for working capital facilities to be availed by Nelco Network Products Limited, a wholly-owned subsidiary of Nelco Limited.

Operational Update

During Q3 FY25, Nelco faced an operational challenge when Intelsat's IS-33E satellite experienced a power outage on October 19, 2024. The company successfully migrated impacted customers to alternative satellite capacity, minimizing the impact on revenue.

Market Position

Nelco continues to operate in the Network Systems segment, leveraging its expertise in satellite communication and related technologies. The company's ability to navigate challenges, such as the satellite outage, demonstrates its resilience in a dynamic market environment.

As Nelco moves forward, the focus will likely be on improving profitability while maintaining its market position in the network systems sector. The dividend announcement, despite the challenging year, signals the company's commitment to delivering value to its shareholders.