Vindhya Telelinks Limited , a leading cable manufacturer and EPC (Engineering, Procurement, and Construction) company from the MP Birla Group, has announced its financial results for the first quarter. The company reported a 6.46% year-on-year increase in standalone net profit, showcasing resilience in a challenging market environment.

Financial Highlights

• Standalone net profit rose to ₹2,089.91 lakhs, up from ₹1,963.13 lakhs in the same quarter last year.
• Revenue from operations reached ₹90,161.00 lakhs on a standalone basis, compared to ₹83,339.77 lakhs in Q1 of the previous year.
• Consolidated revenue from operations stood at ₹90,752.00 lakhs.
• Consolidated profit before tax (PBT) nearly doubled to ₹7,853.00 lakhs from ₹3,964.00 lakhs in the corresponding quarter.
• Consolidated profit after tax (PAT) saw a significant jump to ₹5,862.00 lakhs, up from ₹2,945.00 lakhs in Q1 of the previous year.

Segment Performance

Cable Segment

The Cable segment demonstrated strong growth, driven by increasing demand for Solar and Specialty Cables:

• EBITDA increased to ₹1,592.45 lakhs, up from ₹880.07 lakhs in the same quarter last year.
• Segment revenue reached ₹20,320.73 lakhs.
• The company is expanding its E-Beam crosslinked Solar PV Cable capacity to meet growing demand in the renewable energy sector.

EPC Segment

The Engineering, Procurement, and Construction (EPC) segment showed resilience despite challenges:

• Revenue reported at ₹70,409.26 lakhs.
• EBITDA stood at ₹4,844.67 lakhs.
• EBITDA margin maintained at 6.88%, slightly improving from 6.39% in the corresponding period last year.
• The segment faced temporary headwinds due to delayed payments from the UP-SWSM Project.

Order Book and Future Outlook

• As of quarter-end, the company's order book stood at approximately ₹6,593.00 crores, indicating strong future revenue visibility.
• The company is focusing on strategic initiatives in cost optimization, risk management, and selective project acquisition to strengthen margins and enhance profitability in coming quarters.

Management Commentary

Shri Y.S. Lodha, Managing Director & Chief Executive Officer, stated, "Vindhya Telelinks remains firmly committed to its long-term vision of contributing towards vital infrastructure development in India." He also highlighted that the company, which operates and maintains the optical fiber network for the Defence Forces, has been honored by the Indian Army for its dedication and high-quality service during 'Operation Sindoor'.

About Vindhya Telelinks Limited

Vindhya Telelinks Limited (VTL), part of the esteemed MP Birla Group, specializes in manufacturing and selling Telecommunication Cables, Solar Cables, and Specialty Cables. The company also provides comprehensive EPC services across various infrastructure sectors including Telecom, Power, Water, Irrigation, and Solar. VTL's production facility is located in Rewa, Madhya Pradesh, with its EPC Division head office in Noida, Uttar Pradesh.

The company's performance in Q1 demonstrates its ability to navigate market challenges while maintaining growth in key segments. With a strong order book and strategic focus on high-demand areas like solar cables, Vindhya Telelinks appears well-positioned for continued growth in the infrastructure and renewable energy sectors.

The European Union (EU) has taken a significant step that could affect Indian optical fibre cable manufacturers, including Vindhya Telelinks . The EU has imposed a combined countervailing duty (CVD) and anti-dumping duty of 8.30% on optical fibre cables imported from India.

Impact on Indian Manufacturers

This decision by the EU is expected to have repercussions for Indian companies involved in the production and export of optical fibre cables. Vindhya Telelinks, a key player in this sector, is among the companies likely to feel the impact of this new tariff.

Understanding the Duties

The imposed duty consists of two components:

1. Countervailing Duty (CVD): This is aimed at neutralizing the impact of subsidies provided by the Indian government to domestic manufacturers.
2. Anti-dumping Duty: This is designed to counter the practice of selling goods in the EU market at prices lower than in the home market.

The combined rate of 8.30% suggests that the EU has found evidence to support both subsidy and dumping claims against Indian optical fibre cable manufacturers.

Potential Consequences

For companies like Vindhya Telelinks, this new duty could lead to:

• Increased costs for exporting to the EU market
• Potential loss of competitiveness against manufacturers from other countries
• The need to reassess pricing strategies for the European market

Industry Outlook

The optical fibre cable industry in India may need to adapt to these new market conditions. Companies might explore strategies such as:

• Focusing on other export markets
• Enhancing domestic sales
• Improving production efficiency to offset the impact of the duties

As the situation develops, stakeholders will be closely watching how Vindhya Telelinks and other Indian manufacturers respond to this challenge in the European market.