CARE downgrades Vindhya Telelinks on weaker EPC performance and merger overhang

Vindhya Telelinks Limited ( (IN:VINDHYATEL) ) has issued an update.

Vindhya Telelinks Limited has had its long-term bank facilities rating downgraded by CARE Ratings to CARE A and its short-term facilities to CARE A1, both placed on Rating Watch with Developing Implications, reflecting weaker than expected operating profitability and execution delays in key EPC projects such as the Uttar Pradesh Jal Jeevan Mission. The downgrades also factor in rising receivables, higher reliance on working capital borrowings, and an expected deterioration in leverage metrics, partially offset by strong group support from the MP Birla Group and a robust order book, while the planned amalgamation of Birla Cable Limited into Vindhya Telelinks adds uncertainty pending completion and assessment of its impact on the company’s credit profile.

More about Vindhya Telelinks Limited

Vindhya Telelinks Limited, part of the MP Birla Group, operates in the engineering, procurement and construction (EPC) and cable manufacturing sectors, with a strong presence in energy, water and sanitation, and telecom projects. The company’s business mix is heavily skewed toward EPC, which contributes about 80% of its revenue, while its cable division benefits from steady demand in solar and specialty products, supported by a sizeable order book that underpins medium-term revenue visibility.

Average Trading Volume: 983

Technical Sentiment Signal: Sell

Current Market Cap: 11.57B INR

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