An MP Birla group company, Vindhya Telelink (VTL) posted a turnover of Rs 368.0 crore, mainly due to a 10 percent volume growth in the sale of JFTC and Rs. 36.7 crore from the sale of OFC. This shows a growth of 27 percent as compared to last year’s Rs 286.4 crore. Surprisingly, after a couple of years of stagnant realisations in the JFTC segment, the company reported a 5.1 per cent increase in per unit realisation, which inched from Rs. 699 per CKM in FY 2000 to Rs. 734 per CKM.

While the operating profit margin was under pressure at 21 percent as against 23.4 per cent in FY 2000 (because of higher input costs), PAT was up by 4 per cent at Rs. 30.3 crore. The company generated a cash profit of Rs. 39 crore during the last fiscal.

In the course of the last fiscal, the company forayed into Optical Fiber Cable (OFC) with a firm commitment from Arihant Optics and is moving into optic fiber (OF) manufacturing. The company also floated a subsidiary (Optic Fiber Goa) along with Universal Cables and Birla Ericsson and with the technology from Ericsson Network Technologies, Sweden, to meet part of its requirements for optic fiber (OF). Vindhya Telelinks will have a 60 per cent stake in this subsidiary. The production of OF is likely to commence in the first quarter of 2002. This backward integration is expected to reduce the company’s dependence on outsourced fiber and consequently improve profitability margins. Being in Goa, the company will also enjoy tax benefits.