Vindhya Telelinks soars 12% as board approves expansion plan

The stock soared 12% to Rs 771, also its 52-week high on BSE

Vindhya Telelinks soared 12% to Rs 771, also its 52-week high on BSE, after the company said its board has approved Rs 32.75 crore capital expenditure plan for expansion-cum-diversification at its Rewa copper cable facility, is likely to be operational in two stages by December, 2017.

“The board approved a proposal for substantial expansion-cum-diversification of the Company's existing copper cable facility at Rewa, to be executed in stages, for manufacturing of Electron Beam Irradiated Cross-linked Cables including installation of Electron Beam Accelerator(s) of appropriate rated capacity, with an estimated capital outlay of Rs 32.75 crore, to be funded by a mix of internal accruals and debt,” Vindhya Telelinks said in a BSE filing.

The Company is presently engaged in the manufacturing of a wide variety of cables and it has been decided to expand its products portfolio by diversification into the high end market of specialized electrical cables and electron beam irradiated cross-linked cables. The market for such cables is rapidly expanding due to the exacting technical requirements of new applications and the gradual transition from the conventional cables to the new genre of Electron Beam Irradiated Cables particularly in the market segment of solar energy (DC Solar Cables), railways, ship building, etc.

Meanwhile, Vindya Telelinks has posted 15% year on year (YoY) growth in its standalone net profit at Rs 23.55 crore for the quarter ended March 2017 (Q4FY17), on back of 25.6% rise in net sales at Rs 373 crore over the previous year quarter.

The board has recommended dividend of Rs 7 per share (i.e. 70%) for the financial year 2016-17.

At 11:46 am; the stock was up 10% at Rs 753 on BSE as compared to 0.37% rise in the S&P BSE Sensex. A combined 273,897 shares changed hands on the counter on BSE and NSE so far.