NELCO gets DoT approval to expand satellite services

Tata Group company NELCO Ltd has received a significant regulatory boost, with the Department of Telecommunications (DoT), Ministry of Communications, granting the firm an additional authorisation — UL VNO-GMPCS — under its existing Unified License (Virtual Network Operator).

The approval, dated November 25, allows NELCO to sell VSAT services of other UL-GMPCS licensees, strengthening its presence in the satellite communications market.

The licence, issued by the Government of India’s Department of Telecommunications, will remain valid for 10 years and will be co-terminus with the validity of the company’s existing Unified License (VNO).

Q2 results

NELCO recently reported a steady financial performance in the second quarter of FY24.

On October 16, the company announced a 26.7% year-on-year increase in net profit, rising to ₹5.7 crore from ₹5 crore in the same quarter last year.

The company's revenue during the quarter stood at ₹76.6 crore, marking a 1.6% growth compared to ₹75.4 crore a year ago. However, operating performance was slightly softer, with EBITDA declining 2.1% to ₹13.9 crore, against ₹14.2 crore in the corresponding period of the previous year.

Shares of NELCO Ltd ended lower on Tuesday, November 25, by 1.52% at ₹835 on the NSE.

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