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Company Profile

The result of a public-private partnership between the Madhya Pradesh State Industrial Development Corporation Limited and Universal Cables Limited is Vindhya Telelinks Limited. Vindhya Telelink was founded with the primary goal of producing Jelly Filled Telephone Cables (JFTC). After completing its manufacturing facility in Rewa, Madhya Pradesh, Vindhya Telelinks started producing commercially in 1986. In the current market, Vindhya Telelinks has become a prominent producer and supplier of optical fiber and jelly-filled telecommunication cables. Every year, optical fiber cables that use the newest technology are also produced in large quantities. Vindhya Telelinks conducts all production and manufacturing in accordance with the strict guidelines set forth by the ISO 14001 and ISO 9001 Certifications.

Telecommunication Equipment Industry in India

• With 1,203.69 million phone subscribers, India is currently the second-largest telecom market in the world. Over the past ten years, the country has experienced rapid expansion. According to a report issued by the GSM Association (GSMA) in partnership with Boston Consulting Group (BCG), the Indian mobile economy is expanding quickly and will contribute to the country’s GDP. The Broadband India Forum has predicted that the app economy could be worth around 12 percent of India’s GDP by 2030, presuming the market’s expansion continues at four times the rate of the country’s wider economic growth.

• Along with robust consumer demand, the liberal and reformist policies of the Indian government have played a key role in the telecom industry’s explosive rise. The provision of telecom services to consumers at reasonable costs has been guaranteed by the government’s facilitation of easy market access to telecom equipment and a just and proactive regulatory environment. Due to the relaxation of Foreign Direct Investment (FDI) regulations, the industry is now among the fastest-growing and top five employers in the Nation.

•  The second-largest telecom market in the world is in India. Both wired and wireless broadband subscriptions, as well as the overall subscriber base, have steadily increased. There were 1,168.95 million wireless subscribers as of May 2024. 

• There were 41.31 million wired broadband subscriptions as of May 2024. There has been a lot of investment and development in the industry due to the steadily growing subscriber base. Between April 2000 and March 2024, the telecom industry received US$39.32 billion in foreign direct investment. The Department of Telecommunications and IT received ` 116,342 crore (US$ 13.98 billion) in the Union Budget 2024–2025. 

•  A Zenith Media poll predicts that between 2020 and 2023, India’s telecom advertising business has grown at the highest rate in the world, at an annual rate of 11%. IoT (Internet of Things) will be essential to the development of the 100 smart city projects that the Indian government plans to create. The Atmanirbhar Bharat program is a driving force behind addressing the technology demands of the telecom sector, both now and in the future. To enable India transition to 5G quickly, UPI (Unified Payment Interface) had pushed for the development of domestic 5G technology. India has also begun investing and making advance plans for 6G.

Company Perspective and Review

•  A stronger financial position that permits possible future investments or expansion is indicated by the total increase in reserves, equity, and assets. If not properly handled, the large increase in inventories could be risky because it could tie up cash. The company’s plan to cut back on both short- and long-term borrowings points to an emphasis on improving financial stability and lowering interest costs. Improved operational efficiency is shown by the rise in cash reserves, which provides the business with flexibility for upcoming investments or to withstand economic downturns.

• Although Vindhya Telelink’s revenue and profitability have grown significantly, the company’s growing operating costs underscore the necessity of continuous cost control.

• The secret to the company’s future success will be its capacity to scale operations while maintaining high profit margins. All things considered; the financial results show promise for future expansion provided spending is well controlled.

• Vindhya Telelink announced an equity dividend of 150.00%, or Rs.15 per share, for the fiscal year that ended in March 2024. This yields a dividend of 0.71% at the current share price of
  Rs. 2117.80. For the past five years, the company has regularly distributed dividends and has a Rs. 2117.80. For the past five years, the company has regularly distributed dividends and has a strong dividend track record.