TELEPHONE CABLES LIMITED
REVIEW OF PERFORMANCE
The year 1993-94 has been another year of good performance by your Company.
Though the gross Income has marginally declined due to deduction in the
copper base price and consequent deduction in sale pnce as per price
escalation formula, the net profit has gone up to Rs. 11.52 crores as
compared to Rs. 8.51 crores in the previous year- an appreciable growth of
35%. There has also been increase in sales volume from 11.24 lac CKM to 12.02
Lac CKM. Whereas earning per share has substantially grown to Rs. 11.65 as
against Rs. 8.63 last year, cash earning per share works to Rs. 15.56. In
view of the impressive results, vour Directors have recommended a higher
dividend of 20% (Previous year 15%).
Orders received till date are for approximateiy 7 Lac CKM and further orders
are expected as soon as tenders are finalised. During the year we hope to
produce 15 Lac CKM and the results are expected to be better.
The process of economic liberalisation initiated by the Government continues
and has started vielding results. The recently announced National Telecom
Policy lays emphasis on allowing private sector to plav an important role in
the development of Telecom gector ad thereby ends the monopoly of the
Government in this sphere. Having regard to the recent growth of the economy
and the re-assessed demand, the Eighth Plan Targets have been revised. The
New Telecom Policy envisages--
(a) to make telephones available on demand in theUrban areas and to cover all
the villages by 1997;
(b) to provide a PCO for every 500 persons in the Urban areas by 1997; and
c) to introduce all value added services available internationally and to
raise the telecom services in India to International Standard preferably by
The revised targets provide for release of 10 million connections as against
7.5 million dunng the Eighth Plan Period. It is envisaged to increase the
capacity to 20 million lines by the year 2000. This means an annual growth of
In future one can expect Optic Fibre Cables to have a large presence in
metropolitan areas as well as on the mainline tnunk routes while the other
areas will continue to be served by JFTC. Both these segments are thus
expected to grow. However, with the intensification of telecom network the
emphasls will be to upgrade the existing lines which will result and growing demand for Optic Fibre Cables in the near future. Thus it is necessary to
take care of demand for both to remain in the forefront in the industry. The
new Telecom Policy offers enormous opportunities of growth and development
and promislng future for the telecom industry.
To meet the c,hallanges and take full advantage of the emerging trends In the
economy In general and growth of Telecom Sector in partlcular, your Company
has chalked out ambitious plans or expansion and diversification which
a) speedy Installation of additional equipments toexpand installed capacity
from 15 Lac CKM to 18 Lac CKM;
(b) setting up of facilities for the manufacture of 40,000 FKM of Optic
Fibre Cables to compete and remain ahead in the market;
(c) diversification into the manufacture of Printed Circuit Boards; and
(d) diversification into the areas of basic telecom services and value added
The Company is thus having an exciting future and is expected to improve its
performance further in the years to come.
I take this opportunity to thank the PSIDC, IFCI, IDBI, ICICI and the Banks
for their continued support and co-operation.
I would also like to compliment the Management Team of your Company led by
Ms. Bubli Brar, Managing Director, under whose able stewardship the Company
is making rapid strides year after year. All the employees of the Company
also deserve our whole- hearted appreciation or the splendid work done by
I also thank my esteemed colleagues on the Board for their wise counsel,
guidance and support.
Before I conclude, I express my gratitude for your gracious presence here
this morning to participate in the proceedings and for you continued
cooperation and support.
31st August, 1994444