Is Nelco network products revenue part of core or consolidated? Also any idea what are the products it makes and main revenue sources for it?
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Nelco Network Products Ltd (NNPL) is a key part of Nelco Ltd, with its financial results fully integrated into the parent company’s consolidated reports.
This means you won’t see NNPL’s revenue separately if you’re just looking at Nelco’s stand-alone figures.
Essentially, NNPL handles all the hardware, rentals, and maintenance for the group.
They’re the ones providing the very-small-aperture-terminal (VSAT) earth stations, antennas, modems, and all the related ground equipment.
They also lease these terminals out on three-to-five-year contracts and offer annual maintenance and network-management services.
On top of that, they take on full-scale satellite communication projects for government and enterprise clients.
More recently, they’ve started supplying ship-borne and aircraft terminals, supporting Nelco’s ventures into maritime and in-flight connectivity.
About half of NNPL’s income is recurring, coming from those lease rentals and annual maintenance contracts. The rest comes from one-off equipment sales and project work.
In the fiscal year 2023-24, they brought in around ₹100 crore in revenue, with operating margins close to 16 percent.
Their customers, which include banks, ATMs, oil & gas sites, renewable-energy farms, defense and coastal-surveillance networks, and in-flight connectivity operators, perfectly align with Nelco’s own customer base. So, it’s really NNPL’s operations that explain the difference you see between Nelco Ltd’s stand-alone and consolidated revenue figures.
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