New Risk • Aug 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.1x net interest cover). Earnings have declined by 19% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.4% average weekly change). Profit margins are more than 30% lower than last year (1.2% net profit margin). New Risk • Jul 19
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.1x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.1x net interest cover). Earnings have declined by 19% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (1.2% net profit margin). Reported Earnings • Jul 17
First quarter 2027 earnings released: EPS: ₹1.02 (vs ₹0.79 in 1Q 2026) First quarter 2027 results: EPS: ₹1.02 (up from ₹0.79 in 1Q 2026). Revenue: ₹801.7m (up 6.9% from 1Q 2026). Net income: ₹23.4m (up 30% from 1Q 2026). Profit margin: 2.9% (up from 2.4% in 1Q 2026). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Duyuru • Jul 10
Nelco Limited to Report Q1, 2027 Results on Jul 16, 2026 Nelco Limited announced that they will report Q1, 2027 results on Jul 16, 2026 New Risk • Jun 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 13% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.1% net profit margin). Upcoming Dividend • Jun 02
Upcoming dividend of ₹1.00 per share Eligible shareholders must have bought the stock before 09 June 2026. Payment date: 24 July 2026. Payout ratio is a comfortable 69% but the company is not cash flow positive. Trailing yield: 0.1%. Lower than top quartile of Indian dividend payers (1.5%). Lower than average of industry peers (0.3%). Duyuru • May 22
Nelco Limited, Annual General Meeting, Jun 24, 2026 Nelco Limited, Annual General Meeting, Jun 24, 2026, at 15:30 Indian Standard Time. Declared Dividend • May 13
Dividend of ₹1.00 announced Dividend of ₹1.00 is the same as last year. Ex-date: 9th June 2026 Payment date: 1st January 1970 Dividend yield will be 0.1%, which is lower than the industry average of 0.4%. Sustainability & Growth Dividend is covered by earnings (69% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 76 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 23% to shift the payout ratio to a potentially unsustainable range, which is similar to the EPS decline seen over the last 5 years. Reported Earnings • Apr 21
Full year 2026 earnings released: EPS: ₹1.46 (vs ₹4.18 in FY 2025) Full year 2026 results: EPS: ₹1.46 (down from ₹4.18 in FY 2025). Revenue: ₹3.11b (up 2.0% from FY 2025). Net income: ₹33.2m (down 65% from FY 2025). Profit margin: 1.1% (down from 3.1% in FY 2025). Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Duyuru • Apr 14
Nelco Limited to Report Q4, 2026 Results on Apr 20, 2026 Nelco Limited announced that they will report Q4, 2026 results on Apr 20, 2026 Reported Earnings • Jan 16
Third quarter 2026 earnings released Third quarter 2026 results: Revenue: ₹788.8m (down 3.7% from 3Q 2025). Net loss: ₹11.9m (down 124% from profit in 3Q 2025). Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Duyuru • Jan 09
Nelco Limited to Report Q3, 2026 Results on Jan 15, 2026 Nelco Limited announced that they will report Q3, 2026 results at 12:15 PM, Indian Standard Time on Jan 15, 2026 Reported Earnings • Oct 19
Second quarter 2026 earnings released: EPS: ₹0.71 (vs ₹1.80 in 2Q 2025) Second quarter 2026 results: EPS: ₹0.71 (down from ₹1.80 in 2Q 2025). Revenue: ₹756.1m (down 8.4% from 2Q 2025). Net income: ₹16.2m (down 61% from 2Q 2025). Profit margin: 2.1% (down from 5.0% in 2Q 2025). Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Duyuru • Oct 13
Nelco Limited to Report Q2, 2026 Results on Oct 17, 2025 Nelco Limited announced that they will report Q2, 2026 results on Oct 17, 2025 Reported Earnings • Jul 17
First quarter 2026 earnings released: EPS: ₹0.79 (vs ₹2.00 in 1Q 2025) First quarter 2026 results: EPS: ₹0.79 (down from ₹2.00 in 1Q 2025). Revenue: ₹750.1m (up 1.3% from 1Q 2025). Net income: ₹18.0m (down 61% from 1Q 2025). Profit margin: 2.4% (down from 6.2% in 1Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Duyuru • Jul 08
Nelco Limited to Report Q1, 2026 Results on Jul 14, 2025 Nelco Limited announced that they will report Q1, 2026 results at 12:15 PM, Indian Standard Time on Jul 14, 2025 Reported Earnings • Jun 03
Full year 2025 earnings released: EPS: ₹4.18 (vs ₹10.37 in FY 2024) Full year 2025 results: EPS: ₹4.18 (down from ₹10.37 in FY 2024). Revenue: ₹3.05b (down 4.8% from FY 2024). Net income: ₹95.3m (down 60% from FY 2024). Profit margin: 3.1% (down from 7.4% in FY 2024). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 10% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jun 02
Upcoming dividend of ₹1.00 per share Eligible shareholders must have bought the stock before 09 June 2025. Payment date: 24 July 2025. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 0.1%. Lower than top quartile of Indian dividend payers (1.3%). Lower than average of industry peers (0.3%). Duyuru • May 26
Nelco Limited, Annual General Meeting, Jun 24, 2025 Nelco Limited, Annual General Meeting, Jun 24, 2025, at 15:30 Indian Standard Time. Declared Dividend • May 16
Dividend reduced to ₹1.00 Dividend of ₹1.00 is 55% lower than last year. Ex-date: 9th June 2025 Payment date: 1st January 1970 Dividend yield will be 0.1%, which is lower than the industry average of 0.4%. Payout Ratios Payout ratio: 24%. Cash payout ratio: 74%. Reported Earnings • Apr 25
Full year 2025 earnings released: EPS: ₹4.18 (vs ₹10.37 in FY 2024) Full year 2025 results: EPS: ₹4.18 (down from ₹10.37 in FY 2024). Revenue: ₹3.10b (down 3.2% from FY 2024). Net income: ₹95.3m (down 60% from FY 2024). Profit margin: 3.1% (down from 7.4% in FY 2024). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 7% per year. Duyuru • Apr 25
Nelco Limited Proposes Final Dividend for the Financial Year Ended 31 March 2025 Nelco Limited at its board meeting held on 24 April 2025, recommended a final dividend of INR 1 per share (10%) (face value of INR 10 each) for the financial year ended 31 March 2025 subject to the approval of the shareholders at the upcoming Annual General Meeting of the Company. Duyuru • Apr 16
Nelco Limited to Report Q4, 2025 Results on Apr 24, 2025 Nelco Limited announced that they will report Q4, 2025 results on Apr 24, 2025 Duyuru • Feb 20
Nelco Limited Approves Appointment of Vijay B Somaiya as Independent Director Nelco Limited announced that by Postal Ballot approved appointment of Mr. Vijay B Somaiya as an Independent Director. Reported Earnings • Jan 16
Third quarter 2025 earnings released: EPS: ₹2.17 (vs ₹2.69 in 3Q 2024) Third quarter 2025 results: EPS: ₹2.17 (down from ₹2.69 in 3Q 2024). Revenue: ₹822.4m (down 1.2% from 3Q 2024). Net income: ₹49.5m (down 20% from 3Q 2024). Profit margin: 6.0% (down from 7.4% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 9% per year. New Risk • Jan 09
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Indian stocks, typically moving 9.0% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Reported Earnings • Oct 22
Second quarter 2025 earnings released: EPS: ₹1.80 (vs ₹2.49 in 2Q 2024) Second quarter 2025 results: EPS: ₹1.80 (down from ₹2.49 in 2Q 2024). Revenue: ₹834.6m (up 8.9% from 2Q 2024). Net income: ₹41.0m (down 28% from 2Q 2024). Profit margin: 4.9% (down from 7.4% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Duyuru • Oct 15
Nelco Limited to Report Q2, 2025 Results on Oct 21, 2024 Nelco Limited announced that they will report Q2, 2025 results on Oct 21, 2024 Reported Earnings • Jul 12
First quarter 2025 earnings released: EPS: ₹1.81 (vs ₹2.51 in 1Q 2024) First quarter 2025 results: EPS: ₹1.81 (down from ₹2.51 in 1Q 2024). Revenue: ₹741.9m (down 5.9% from 1Q 2024). Net income: ₹45.6m (down 20% from 1Q 2024). Profit margin: 6.1% (down from 7.3% in 1Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 31% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Jul 04
Nelco Limited to Report Q1, 2025 Results on Jul 11, 2024 Nelco Limited announced that they will report Q1, 2025 results on Jul 11, 2024 Upcoming Dividend • Jun 03
Upcoming dividend of ₹2.20 per share Eligible shareholders must have bought the stock before 10 June 2024. Payment date: 17 July 2024. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of Indian dividend payers (1.2%). In line with average of industry peers (0.3%). Duyuru • May 24
Nelco Limited, Annual General Meeting, Jun 25, 2024 Nelco Limited, Annual General Meeting, Jun 25, 2024, at 15:30 Indian Standard Time. Duyuru • Apr 26
Nelco Limited Announces Resignation Kaushik Mandal, Head Customer Experience and A Senior Management Personnel Nelco Limited informed that Mr. Kaushik Mandal, Vice President & Head Customer Experience and a Senior Management Personnel has resigned from the services of the Company due to his personal priorities. Reported Earnings • Apr 25
Full year 2024 earnings released: EPS: ₹10.37 (vs ₹8.70 in FY 2023) Full year 2024 results: EPS: ₹10.37 (up from ₹8.70 in FY 2023). Revenue: ₹3.20b (up 2.2% from FY 2023). Net income: ₹236.7m (up 19% from FY 2023). Profit margin: 7.4% (up from 6.3% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 56% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Apr 24
Full year 2024 earnings released: EPS: ₹10.37 (vs ₹8.70 in FY 2023) Full year 2024 results: EPS: ₹10.37 (up from ₹8.70 in FY 2023). Revenue: ₹3.23b (up 3.0% from FY 2023). Net income: ₹236.7m (up 19% from FY 2023). Profit margin: 7.3% (up from 6.3% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 60% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Apr 15
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 0.3% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks High level of debt (44% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Duyuru • Apr 13
Nelco Limited to Report Fiscal Year 2024 Results on Apr 23, 2024 Nelco Limited announced that they will report fiscal year 2024 results on Apr 23, 2024 Duyuru • Apr 05
Nelco Limited Announces Changes to its Board Nelco Limited announced that the Board of Directors at its meeting held on 5th April 2024 has approved the appointment of Mr. Ritesh N Kamdar as Company Secretary & Head-Legal, Compliance Officer under Listing Regulations and a Key Managerial Personnel of the Company with effect from 14th May 2024 in place of Mr. Girish V. Kirkinde, who will be superannuated from the services of the Company with effect from 30th April 2024 at the close of business hours. Ritesh N Kamdar, Date of Birth: September 7, 1983. Educational Qualifications: Educational Qualifications: B.com, ACS & LLB (G) Mr. Ritesh Kamdar is a seasoned professional with more than 19 year of experience in company secretary & legal functions. He is an Associate Member of the Institute of Company Secretaries of India (ICSI) and also holds a degree of Bachelor of Commerce and LLB(G) from the University of Mumbai. His expertise lies in corporate law, legal and governance, accompanied by exceptional leadership capabilities. Ritesh Kamdar is an Associate Member of Institute of Company Secretaries of India (ICSI) and also holds the degree of Bachelor of Commerce and LLB (G) from Mumbai University. He has over 19 years of experience in the Secretarial and Legal field. In the past, he had worked with various renowned business groups which comprise of national and multinational conglomerates. During his past stints, as a part of secretarial and legal assignments, he has extensively worked on fund raising, acquisitions, due diligence, better governance and digitization of records. Currently, he is serving as Company Secretary of Tata Housing Development Company Limited. New Risk • Jan 17
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 44% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. This is currently the only risk that has been identified for the company. Reported Earnings • Jan 16
Third quarter 2024 earnings released: EPS: ₹2.69 (vs ₹2.19 in 3Q 2023) Third quarter 2024 results: EPS: ₹2.69 (up from ₹2.19 in 3Q 2023). Revenue: ₹840.8m (up 13% from 3Q 2023). Net income: ₹61.5m (up 23% from 3Q 2023). Profit margin: 7.3% (up from 6.7% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 59% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Jan 05
Nelco Limited to Report Q3, 2024 Results on Jan 15, 2024 Nelco Limited announced that they will report Q3, 2024 results on Jan 15, 2024 Reported Earnings • Oct 18
Second quarter 2024 earnings released: EPS: ₹2.49 (vs ₹1.96 in 2Q 2023) Second quarter 2024 results: EPS: ₹2.49 (up from ₹1.96 in 2Q 2023). Revenue: ₹770.6m (up 2.1% from 2Q 2023). Net income: ₹56.9m (up 27% from 2Q 2023). Profit margin: 7.4% (up from 5.9% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 62% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Oct 06
Nelco Limited to Report Q2, 2024 Results on Oct 16, 2023 Nelco Limited announced that they will report Q2, 2024 results on Oct 16, 2023 New Risk • Jul 21
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 45% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 0.2% per year over the past 5 years. Minor Risks High level of debt (45% net debt to equity). Share price has been volatile over the past 3 months (7.2% average weekly change). Reported Earnings • Jul 21
First quarter 2024 earnings released: EPS: ₹2.51 (vs ₹2.07 in 1Q 2023) First quarter 2024 results: EPS: ₹2.51 (up from ₹2.07 in 1Q 2023). Revenue: ₹788.0m (down 3.5% from 1Q 2023). Net income: ₹57.3m (up 21% from 1Q 2023). Profit margin: 7.3% (up from 5.8% in 1Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 56% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jul 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 0.2% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (7.1% average weekly change). Duyuru • Jul 12
Nelco Limited to Report Q1, 2024 Results on Jul 20, 2023 Nelco Limited announced that they will report Q1, 2024 results on Jul 20, 2023 Upcoming Dividend • May 30
Upcoming dividend of ₹2.00 per share at 0.3% yield Eligible shareholders must have bought the stock before 06 June 2023. Payment date: 22 July 2023. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of Indian dividend payers (1.6%). Lower than average of industry peers (0.5%). Duyuru • May 19
Nelco Limited, Annual General Meeting, Jun 22, 2023 Nelco Limited, Annual General Meeting, Jun 22, 2023, at 11:30 Indian Standard Time. Valuation Update With 7 Day Price Move • May 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹632, the stock trades at a trailing P/E ratio of 72.7x. Average trailing P/E is 35x in the Communications industry in India. Total returns to shareholders of 277% over the past three years. Reported Earnings • Apr 26
Full year 2023 earnings released: EPS: ₹8.70 (vs ₹7.05 in FY 2022) Full year 2023 results: EPS: ₹8.70 (up from ₹7.05 in FY 2022). Revenue: ₹3.16b (up 22% from FY 2022). Net income: ₹198.5m (up 23% from FY 2022). Profit margin: 6.3% (up from 6.2% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 54% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jan 23
Third quarter 2023 earnings released: EPS: ₹2.19 (vs ₹2.30 in 3Q 2022) Third quarter 2023 results: EPS: ₹2.19 (down from ₹2.30 in 3Q 2022). Revenue: ₹749.5m (up 4.0% from 3Q 2022). Net income: ₹50.0m (down 4.9% from 3Q 2022). Profit margin: 6.7% (down from 7.3% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Jan 06
Nelco Limited to Report Q3, 2023 Results on Jan 20, 2023 Nelco Limited announced that they will report Q3, 2023 results on Jan 20, 2023 Board Change • Nov 16
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. 1 highly experienced director. MD, CEO & Executive Director Pradip Nath is the most experienced director on the board, commencing their role in 2012. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 22
Second quarter 2023 earnings released: EPS: ₹1.96 (vs ₹1.49 in 2Q 2022) Second quarter 2023 results: EPS: ₹1.96 (up from ₹1.49 in 2Q 2022). Revenue: ₹754.4m (up 23% from 2Q 2022). Net income: ₹44.7m (up 32% from 2Q 2022). Profit margin: 5.9% (up from 5.6% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 54% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Oct 08
Nelco Limited to Report Q2, 2023 Results on Oct 20, 2022 Nelco Limited announced that they will report Q2, 2023 results on Oct 20, 2022 Reported Earnings • Jul 20
First quarter 2023 earnings released: EPS: ₹2.07 (vs ₹1.92 in 1Q 2022) First quarter 2023 results: EPS: ₹2.07 (up from ₹1.92 in 1Q 2022). Revenue: ₹816.8m (up 48% from 1Q 2022). Net income: ₹47.2m (up 7.8% from 1Q 2022). Profit margin: 5.8% (down from 7.9% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 36% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Jul 05
Nelco Limited to Report Q1, 2023 Results on Jul 18, 2022 Nelco Limited announced that they will report Q1, 2023 results on Jul 18, 2022 Upcoming Dividend • Jun 14
Upcoming dividend of ₹1.80 per share Eligible shareholders must have bought the stock before 21 June 2022. Payment date: 07 August 2022. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of Indian dividend payers (1.8%). Lower than average of industry peers (0.5%). Duyuru • Jun 07
Nelco Limited, Annual General Meeting, Jul 08, 2022 Nelco Limited, Annual General Meeting, Jul 08, 2022, at 14:30 Indian Standard Time. Board Change • Jun 02
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. 1 highly experienced director. MD, CEO & Executive Director Pradip Nath is the most experienced director on the board, commencing their role in 2012. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Duyuru • May 28
Nelco Limited Announces Executive Changes Nelco Limited announced that Mr. R.R.Bhinge, Chairman (Non - Executive Non-Independent Director) has stepped down from the Board of Directors of the Company w.e.f. 29th May 2022 pursuant to the "Group Governance Guidelines on Board Effectiveness" for retirement of Non-Executive Directors adopted by the Company on attaining the age of 70 years (the age of retirement). The Board of Directors (on the recommendation of the Nomination, HR and Remuneration Committee), approved the Appointment of Mr. Amur Swaminathan Lakshminarayanan (DIN 08616830) as an Additional Director and Chairman (Non-Executive Non-Independent Director) of the Company with effective 29 May 2022. Mr. Amur Swaminathan Lakshminarayanan currently working as Managing Director and Chief Executive Officer of the Tata Communications Ltd. Mr. Amur Swaminathan Lakshminarayanan is a global techno-commercial leader across regions and industries recognised for developing scalable businesses in UK, Europe, Japan and India, and has worked across the globe. Duyuru • Apr 28
Nelco Limited Announces Director Changes Nelco Limited announced Mr. Anand Agarwal (Non Executive Non-Independent Director) resigned from the Board of Directors of the Company with effect from 26th April 2022 to facilitate restructuring of the Board of Nelco Ltd. as per the decision of Parent Company i.e. The Tata Power Company Ltd. The Board of Directors at its meeting held on 26th April 2022 approved the Appointment of Mr. Saurabh Ray as an Additional Director (Non-Executive Non-Independent Director) of the Company with effect from 26th April 2022. Saurabh Ray has worked for more than 27 years in Information Technology and services industry. Currently working at The Tata Power Company Ltd. (TPCL) as the Head of Enterprise Application. Prior to TPCL, Mr. Ray was working as Vice President in Wipro Ltd. for 3 years managing the global delivery of one of the business units. Before that he spent 23 years in Tata Consultancy Services playing various management roles. His area of expertise is related to Business Strategy, Sales and Delivery, Technology Transformation. Reported Earnings • Apr 28
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: ₹7.05 (up from ₹5.42 in FY 2021). Revenue: ₹2.65b (up 17% from FY 2021). Net income: ₹160.8m (up 30% from FY 2021). Profit margin: 6.1% (up from 5.5% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 15%. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 33% per year, which means it is well ahead of earnings. Duyuru • Apr 27
Nelco Limited Recommends Dividend for the Financial Year 2021-22 The board of directors of Nelco Limited at its meeting held on April 26, 2022, recommended a dividend of INR 1.8 per equity share of INR 10 each (18%) for the financial year 2021-22 subject to the approval of the shareholders at the upcoming annual general meeting. Duyuru • Apr 14
Nelco Limited to Report Q4, 2022 Results on Apr 26, 2022 Nelco Limited announced that they will report Q4, 2022 results on Apr 26, 2022 Reported Earnings • Jan 21
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: ₹2.30 (up from ₹1.67 in 3Q 2021). Revenue: ₹720.6m (up 23% from 3Q 2021). Net income: ₹52.6m (up 38% from 3Q 2021). Profit margin: 7.3% (up from 6.5% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 15%. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 49% per year, which means it is well ahead of earnings. Reported Earnings • Oct 21
Second quarter 2022 earnings released: EPS ₹1.49 (vs ₹0.97 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: ₹612.2m (up 15% from 2Q 2021). Net income: ₹34.0m (up 53% from 2Q 2021). Profit margin: 5.6% (up from 4.2% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 54% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 12
Investor sentiment improved over the past week After last week's 27% share price gain to ₹470, the stock trades at a trailing P/E ratio of 72.1x. Average trailing P/E is 29x in the Communications industry in India. Total returns to shareholders of 40% over the past three years. Reported Earnings • Aug 02
First quarter 2022 earnings released: EPS ₹1.92 (vs ₹0.81 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: ₹566.2m (up 14% from 1Q 2021). Net income: ₹43.8m (up 138% from 1Q 2021). Profit margin: 7.7% (up from 3.7% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 30% share price gain to ₹325, the stock trades at a trailing P/E ratio of 60x. Average trailing P/E is 43x in the Communications industry in India. Total returns to shareholders of 26% over the past three years. Upcoming Dividend • May 31
Upcoming dividend of ₹1.20 per share Eligible shareholders must have bought the stock before 07 June 2021. Payment date: 22 July 2021. Trailing yield: 0.6%. Lower than top quartile of Indian dividend payers (1.7%). Lower than average of industry peers (0.8%). Duyuru • May 21
Nelco Limited Recommends a Dividend for the Financial Year Ended 31 March 2021 Nelco Limited announced that the Board of Directors at their Meeting held on 28th April 2021 has recommended a Dividend of INR 1.20/- per Equity Share of INR 10/- each (12%) for the Financial Year ended 31st March 2021. The Company shall, therefore be required to deduct tax at source at the time of making the payment of the Dividend, if declared at the Annual General Meeting of the Company to be held on 22nd June 2021. Reported Earnings • May 02
Full year 2021 earnings released: EPS ₹5.42 (vs ₹6.30 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: ₹2.29b (up 4.1% from FY 2020). Net income: ₹123.6m (down 14% from FY 2020). Profit margin: 5.4% (down from 6.5% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Duyuru • Apr 29
Nelco Limited Recommends Dividend for the Financial Year 2020-21 Nelco Limited announced that oard of Directors of the Company at its meeting held on April 28, 2021, the Board of Directors have recommended a Dividend of INR 1.20/- per Equity Share of INR 10/- each (12%) for the Financial Year 2020-21 subject to the approval of the Shareholders at the ensuing Annual General Meeting. Is New 90 Day High Low • Feb 06
New 90-day high: ₹235 The company is up 29% from its price of ₹182 on 06 November 2020. The Indian market is up 23% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Communications industry, which is up 11% over the same period. Reported Earnings • Jan 30
Third quarter 2021 earnings released: EPS ₹1.67 (vs ₹1.60 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: ₹585.5m (up 3.9% from 3Q 2020). Net income: ₹38.2m (up 4.7% from 3Q 2020). Profit margin: 6.5% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Duyuru • Jan 16
Nelco Limited to Report Q3, 2021 Results on Jan 28, 2021 Nelco Limited announced that they will report Q3, 2021 results on Jan 28, 2021 Is New 90 Day High Low • Jan 12
New 90-day high: ₹214 The company is up 20% from its price of ₹178 on 14 October 2020. The Indian market is up 24% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Communications industry, which is up 12% over the same period. Is New 90 Day High Low • Dec 10
New 90-day high: ₹209 The company is up 9.0% from its price of ₹192 on 11 September 2020. The Indian market is up 18% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Communications industry, which is up 6.0% over the same period. Reported Earnings • Nov 07
Second quarter 2021 earnings released: EPS ₹0.97 The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ₹541.4m (up 1.0% from 2Q 2020). Net income: ₹22.2m (up 45% from 2Q 2020). Profit margin: 4.1% (up from 2.9% in 2Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Oct 12
New 90-day low: ₹184 The company is down 13% from its price of ₹213 on 14 July 2020. The Indian market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is flat over the same period. Duyuru • Oct 04
Nelco and Telesat Partner to Bring Advanced Leo Satellite Network to India Nelco has entered into a cooperation agreement with Telesat. Nelco and Telesat will collaborate on terrestrial facilities, commercial distribution and regulatory frameworks to offer Telesat LEO satellite connectivity in India. Telesat LEO is a next generation satellite constellation that leverages Telesat's global, priority Ka-band spectrum rights and patent-pending architecture to fundamentally transform global communications. Telesat LEO will help close the digital divide in remote and challenging locations, accelerate 5G expansion, and set new levels of performance for enterprise, telecom, mobility and government broadband connectivity on land, air and sea. The Telesat LEO constellation will provide complete coverage of India and superior enterprise connectivity in the country, subject to the necessary regulatory clearances. The availability of the Telesat LEO Network in India has the potential to provide significant benefits in areas like 4G/5G backhaul, mobile hotspots, distance education, telemedicine, village connectivity, as well as maritime and inflight connectivity. The open architecture, compliant with the Metro Ethernet Forum standard, will simplify the integration of Telesat LEO services with enterprise networks, including Nelco infrastructure and service offerings. Acting as a virtual fibre network, Telesat LEO Layer 2 transport service can deliver hundreds of Mbps to a terminal. The Telesat LEO satellites incorporate next-generation technologies, including: Data Processing in Space: Full digital modulation, demodulation, and data routing occurs in space, resulting in higher capacity and flexibility Phased Array Antennas: Sophisticated antennas on each satellite with hopping and reconfigurable beams scan the earth to provide full coverage and can dynamically focus capacity precisely where required Optical Inter-satellite Links: Data can travel at the speed of light from one satellite to another, resulting in a fully interconnected global mesh network in space. Globally, the satellite communications industry has been growing at a rapid pace owing to advancements in technology, light touch regulations and an increase in Internet traffic demands. LEO satellites are poised to revolutionise the industry, and with the prospective opening of the space sector in India, Nelco, through its strategic relationship with Telesat, plans to serve new market segments and requirements for high-bandwidth, low latency applications with Telesat LEO connectivity. Is New 90 Day High Low • Sep 24
New 90-day low: ₹187 The company is down 5.0% from its price of ₹196 on 26 June 2020. The Indian market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 17% over the same period. Duyuru • Jul 17
Nelco Limited to Report Q1, 2021 Results on Jul 31, 2020 Nelco Limited announced that they will report Q1, 2021 results on Jul 31, 2020 
