Vindhya Telelinks has disclosed receiving a GST demand order from tax authorities, presenting a regulatory challenge for the telecommunications infrastructure company. The order, dated December 23, 2023, was received by the company on the same day at 4:21 PM IST.

GST Demand Details

The Superintendent, CGST Range-1, Central Goods Service Tax Division-2, Jammu, has issued an order confirming the demand for GST along with applicable interest and penalty. The order covers the period from Financial Year 2018-19 to Financial Year 2022-23.

Note: Interest is calculated up to December 23, 2023. All amounts are in lakhs.

Nature of Alleged Violation

The GST order has been passed under the provisions of Section 74 of Central Goods and Service Tax Act, 2017/JK Goods and Service Tax Act, 2017 read with Integrated Goods and Services Act, 2017. The specific violation relates to the availment of ineligible Input Tax Credit (ITC) amounting to ₹6.13 lakh for the period FY2018-19 to FY2022-23.

Company's Response

Vindhya Telelinks has stated that the financial impact of this order cannot be determined at this stage. The company has indicated its intention to file an appeal against the order.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed both BSE Limited and The National Stock Exchange of India Limited about this development. The information has also been uploaded on the company's official website at https://www.vtlrewa.com .

Vindhya Telelinks , a prominent player in the telecommunications infrastructure sector, has announced robust financial results for the first quarter, showcasing significant growth across key metrics.

Strong Financial Performance

The company reported a remarkable increase in its consolidated net profit, which nearly doubled to ₹586.00 crore from ₹294.00 crore in the corresponding period last year. This substantial growth in profitability underscores the company's operational efficiency and strong market position.

Revenue Growth and Operational Excellence

Vindhya Telelinks demonstrated solid top-line growth, with revenue increasing to ₹9,100.00 crore, up from ₹8,300.00 crore in the same quarter of the previous year. This represents a year-on-year growth of approximately 9.64%, indicating the company's ability to expand its market presence and capitalize on industry opportunities.

Improved Profitability Metrics

The company's financial results also highlight improvements in key profitability metrics:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant increase, rising to ₹606.00 crore from ₹491.00 crore in the previous year. This represents a robust growth of 23.42% year-on-year.

Moreover, Vindhya Telelinks managed to improve its EBITDA margin, which expanded to 6.66% from 5.92% in the same period last year. This 74 basis points improvement in the EBITDA margin reflects the company's enhanced operational efficiency and cost management strategies.

Conclusion

Vindhya Telelinks' strong first-quarter performance, characterized by doubled net profit, increased revenue, and improved profitability metrics, positions the company favorably in the competitive telecommunications infrastructure market. The significant growth across key financial indicators suggests that the company's strategic initiatives and market approach are yielding positive results, potentially setting the stage for continued success in the coming quarters.