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MP Birla Group

Flagship companies of the MP Birla group, Vindhya Telelinks Limited and Birla Cables Limited cater to the telecom industry.

Vindhya Telelinks Limited
In 2021-22, the revenue from operations decreased by 11.86 percent to ₹1323.95 crore, as compared to ₹1502.06 crore in the previous year. The company achieved profit before interest, depreciation/amortization and tax of ₹186.10 crore during the year 2021-22, as compared to ₹224.99 crore in the previous year. Profit before depreciation and tax during the year 2021-22 stood at ₹134.20 crore, as against ₹155.83 crore in the previous year.

Vindhya Telelinks Limited
Unaudited consolidated profit and loss statement ( ₹ crore)

Particulars H1 FY23 H1 FY22
Revenue from operations 886.91 663.94
Other income 11.45 11.35
Total income 898.36 675.29
Total expenses 837.47 615.52
Profit for the period 55.73 102.84
Total comprehensive income (59.91) 125.00
EPS (₹) 47.02 86.78

The company’s revenue from operations on account of sale of products, comprising of telecommunication cables, other wires and cables, FRP rod/glass roving, and traded goods increased from ₹481.93 crore in the previous year to ₹560.25 crore. This reasonable increase in the revenue was achieved despite the pandemic-related disruptions in normal operations during the beginning of the financial year under review, and also due to customer-retention measures adopted by the company and reaching out for new customer acquisition, which paved the way for this improved performance even during the challenging period for the industry as a whole.

Vindhya Telelinks Limited

Unaudited consolidated balance sheet ( ₹ crore)

Particulars H1 FY23 H1 FY22
Current assets 2085.63 1866.20
Non-current assets 3227.97 3165.11
Total assets 5313.60 5031.31
Total equity 3220.79 3096.91
Total liabilities 2092.81 1934.40
Total equity and liabilities 5313.60 5031.31

The company’s revenue from Engineering, Procurment, and Construction (EPC) contracting/turnkey services in the EPC business segment has decreased to ₹859.41 crore, as compared to ₹1103.48 crore in the previous year, mainly due to low order booking in the first half of the financial year.

Vindhya Telelinks Limited

Consolidated profit and loss statement ( ₹ crore)

Particulars FY22 FY21
Revenue from operations 1323.95 1502.06
Other income 31.01 55.31
Total income 1354.96 1557.37
Total expenses 1242.95 1394.30
Profit for the period 193.28 270.08
Total comprehensive income 367.57 481.24
EPS (₹) 163.09 227.90

Its IP-1 performance during the year was muted due to temporary slowdown in capital expenditure by TSPs. Further, the company’s IP-1 business model has delivered tremendous value to all the telecom operators, who are its esteemed customers, deriving greater benefits out of the network built by the company, thereby offering latest digital services to the subscribers with ultimate customer delight.

Vindhya Telelinks Limited

Consolidated balance sheet ( ₹ crore)

Particulars FY22 FY21
Current assets 1757.28 2082.055
Non-current assets 3277.13 2939.305
Total assets 5034.40 5021.360
Total equity 3236.82 2880.920
Total liabilities 1797.58 2140.444
Total equity and liabilities 5034.40 5021.364

The company continued its focus on judicious capital allocation, and incurred a capital expenditure aggregating to Rs 8.22 crore, consisting of addition to buildings, plant and equipment, and other fixed assets for further capacity expansion/augmentation.

Birla Cable Limited
The revenue from operations increased by 62.99 percent to ₹535.45 crore during the financial year 2021-22, as compared to ₹328.52 crore during the previous year, primarily due to reasonable increase in order flow, especially from the long-term customers. The profit after tax for the year under review stood at ₹21.74 crore, as compared to ₹8.20 crore in the year 2020-21.

Vindhya Telelinks Limited
Revenue by segment ( ₹ crore)

Unaudited Unaudited Audited
Particulars H1 FY23 H1 FY22 FY22
Cables 378.31 312.73 560.25
EPC 606.94 431.30 859.41
Total 985.25 744.04 1419.66

There is a good increase in OFC business, which reached the level of ₹258.04 crore during the financial year 2021-22 as compared to ₹165.10 crore in the previous year. The company’s sales turnover from copper cables and structured cables witnessed phenomenal increase during the financial year 2021-22. The sales increased to ₹260.93 crore, as compared to ₹152.80 crore in the previous year.

Birla Cable Limited

 Unaudited consolidated profit and loss statement ( ₹ crore)

Particulars H1 FY23
Revenue from operations  347.19
Other Income  1.55
Total income  348.74
Total expenses  332.97
Profit for the year  12.01
Total comprehensive income  17.47
EPS (₹)  4.00

The company continued its focus on judicious capital allocation, and incurred capital expenditure aggregating to ₹6.62 crore, consisting of addition to buildings, plant and equipment, and other fixed assets for further capacity expansion/augmentation.

Birla Cable Limited

 Unaudited consolidated balance sheet ( ₹ crore)

Particulars H1 FY23
Current assets 332.59
Non-current assets 107.73
Total assets 440.32
Total equity 199.51
Total liabilities 240.81
Total equity and liabilities 440.32

Outlook
At present, India continues to be highly under-fiberized with the fiber deployment to population ratio standing at 0.09 km, which is one-tenth of the global average of 0.9 km. Further, the levels of tower fiberization will have to increase from one-third at present to two-third. In fact, the current data usage is growing at a faster pace, creating a critical need for robust fiberized backhaul.

Birla Cable Limited

Consolidated profit and loss statement ( ₹ crore)

Particulars FY22 FY21
Revenue from operations  535.45  328.52
Other income  2.70  1.83
Total income  538.14  330.36
Total expenses  508.90  319.40
Profit for the year  21.74  8.20
Total comprehensive income  21.23  12.52
EPS (₹)  7.25  2.73

Large scale fiberization is also key to the success of government-driven programs, such as Digital India, the National Broadband Mission, and the Smart Cities Mission, and for meeting the set targets under the National Digital Communication Policy 2018.

Birla Cable Limited

Consolidated balance sheet ( ₹ crore)

Particulars FY22 FY21
Current assets  253.69  219.86
Non-current assets  92.27  96.79
Total assets  345.96  316.66
Total equity  186.54  168.31
Total liabilities  159.43  148.37
Total equity and liabilities  345.96  316.68

Ultimately, the importance of digital connectivity was very well felt during the Covid-19 pandemic, and in fact the need has surged in a big way. Owing to this, there is a need already arisen to strengthen the optical fiber cable network across the country, and a greater urge to connect the rural masses deep inside the country.

These emerging opportunities for optical fiber cables infrastructure including the impending introduction of 5G technology in the mobile communication networks augur well for both Cable and EPC business segments. Government-driven BharatNet project envisages the deployment of optical fiber cables in large quantity across the country, which may lead to optimum capacity utilization in cables manufacturing set-up, besides bringing enormous opportunity for the EPC division with large-scale cable deployment opportunities.

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