Vindhya Telelinks Ltd. — Interim / Quarterly Report 2020

Aug 10, 2019

Vind hya Telelinks Limited

Regd, Office: Udyog Vihar, p.O. Chorhata, Rewa , 486 006 (M.p.l tndia. Tel. : (07662) 400400. Fax : {07662) 400591 E-Mail I headoffice@vtlrewa.com . Website : ,M/w.vtlrewa.com PAN No. AAACV7757J . CIN No. L3l300M Pl983pLC002l34 GSTIN : 23AAACV7757JI ZO

vrLlstrc 119-20 I

BSE Ltd. The Manager, CorporateRelationshipDepartment, ListingDepartment, 1"t Floor, New Trading Ring, Rotunda Building, P.J.Towers. Dalal Street. Fort, MUMBAI-4OO OOl

10 AUGUST 2019

The National Stock Exchange of India Ltd, Exchange Plaza, C-l, Block G, Bandra Kurla Complex, Bandra (E), MUMBAI-4OO O51

Companv's Scrip Code: 517O15

Company's Scrip Code: VINDHYATEL

Dear Sir,

Sub: Submission of Press Release pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enciosing herewith the copy of the Press Release issued by the Company after the Board Meeting held on 9th August, 2O19.

This is for your information and record.

Thalking you,

Yours faithfullv. for Vin ya Telelinks Limited

(Satye ttnalKJ Company Secretary

Encl: As above.

Vindhya Telelinks Ltd. Registered Office: Udyog Vihar, P.O.Chorhata, Rewa - 486006(M.P.) India. Tel: (07662) 400400-Fax: (07662) 400591 E-Mail:headoffice@vtlrewa.com.website:www.vtlrewa.com CIN No.L31300MP1983PLC002134

Press Release (Q1 2019-20) 9th August, 2019 Source: Vindhya Telelinks Ltd. (VTL)

New Delhi, 09.08.2019: Vindhya Telelinks Ltd.-VTL (BSE: 517015, NSE: VINDHYATEL ), one of India's leading infrastructure providers and manufacturer of all types of Telecommunication Cables including speciality Optical Fibre Cables continued its strong performance in the first quarter ended on 30th June, 2019 of the Financial Year 2019- 20(FY20). Snapshot of standalone and consolidated financial performance is given hereunder:

418.95 404.74 73.87 68.48 33.07 33.29 0 100 200 300 400 500 June'19 June'18 Rs. in Crores Revenue from Operations EBIDTA PAT 418.95 404.74 112.05 98.35 70.55 62.33 0 100 200 300 400 500 June'19 June'18 Rs. in Crores Revenue from Operations EBIDTA PAT

Standalone Financial Results Consolidated Financial Results Y-O-Y Growth Y-O-Y Growth

(Rs. in Crores)				(Rs. in Crores)
Particulars	June'19	June'18	YOY	Particulars	June'19	June'18	YOY
Revenue from	418.95	404.74	4%	Revenue from	418.95	404.74	4%
Operations				Operations
EBIDTA	73.87	68.48	8%	EBIDTA	112.05	98.35	14%
EBITDA Margin	18%	17%		EBITDA Margin	27%	24%
PAT	33.07	33.29	--	PAT	70.55	62.33	13%

Vindhya Telelinks Ltd. (VTL), during the quarter ended on 30th June, 2019, recorded Standalone Revenue form Operations of Rs.418.95 Crores, as compared to Rs.404.68 Crores, grew 4% on Y-o-Y. Despite headwinds in the telecom cables industry in particular and telecom sector in general, EBIDTA margins at 18% witnessed improvement in the current quarter, as against 17% in the corresponding quarter of previous Financial Year 2018-19. PAT at Rs.33.07 Crores is almost at the same level of corresponding quarter of previous Financial Year. In a period characterised by slow to negative growth across many sectors, the Company's Revenue from Operations rose by 4% on Y -o- Y. It is despite the fact that a high value tender floated by BSNL for BharatNet Project, wherein the Company emerged as successful bidder in five packages, the confirmation of Advance Purchase Orders into firm Purchase Orders is still awaited and in a few of other orders the commencement of work had started after prolonged delays due to procedural formalities.

The prices of optical fibre which started tapering off from the third quarter of previous Financial Year 2018-19, have bottomed out due to fall in demand of Optical Fibre and Optical Fibre Cables especially from China. It is expected that the present impasse shall not last long, as Telecom Operator's around the world shall start rolling out of 5G networks besides big expansion of FTTH services.

The Global Telecom Industry landscape is changing faster than ever. Erosion of legacy revenue stream driven by huge surge in mobile data and over - the - top (OTT) continues at rapid pace, forcing operators to continue to consider new ways of remaining relevant to the consumer and enterprise customers. Following the global trend, Indian Telecom Sector is also witnessing a radical transformation due to surging mobile data usage and growing smartphone adoption. The increase in data demand has made it imperative for operators to establish high capacity Optic Fibre Cable (OFC) networks, both for the last mile connectivity and the backhaul. India, presently contributes around 5.7 per cent of the global fibre demand. At the moment, the 4G network expansion dominates the near-term spending agenda of the telecom operators and the Company expects the post current fiscal year 2019-20, landscape will be transformed by 5G. In addition to this, the internet data boom and rising consumption of content and related services will eventually leads 4G LTE resources to exhaust, leaving operators no choice but to adopt 5G networks. Optical Fibre connectivity will play an essential role in creating high performing, dense urban networks that are able to sustain high data growth from 5G services. Government of India's renewed emphasise on completion of roll out of the BharatNet project, the world's largest rural broadband project connecting 2,50,000 gram panchayat's will help to achieve manifold increase in the demand of OFC.

The Company sensing the emerging business potential, the Company has already embarked upon ambitious expansion plan in two phases. Phase -I envisaging increase in the manufacturing capacity of OFC, which has already become operational. Phase -II of the expansion plan is presently underway and the same shall become operational in the current Financial Year 2019-20. This together with wider product's range initiatives undertaken in the last couple of years together with the strong project execution capabilities of EPC business segment will pave the way for sustainable growth in long term.

The EPC Business segment of the Company has established itself as a reliable and credible Infrastructure Provider through its strong execution skills in diverse projects in the fields of Telecom, Power, Sewerage Pipeline, Lift Irrigation, Smart City and IP-1 projects in a big way. The EPC Business Segment has a healthy order book of about Rs.3,500.00 Crores (including Advance Purchase Orders of over Rs.1,200.00 Crores) besides tenders of Rs.447.00 Crores in which the Company has emerged as successful bidder. Currently, with more than 29,000 Route KMs of Dark Fibre Network laid spread across 12 states is one of the largest in the Country in the category of IP-1 licensee. Apart from this, the Company has distinction of connecting 'CHARDHAM', 'AMARNATH SHRINE' and 'SIACHEN BASE CAMP' and creation of other high altitude and different terrain of the Country with its fibres.

For further information / details you may contact Shri Satyendu Pattnaik, Company Secretary at headoffice@vtlrewa.com.