Finolex Cables standalone net profit declines 17.99% in Q4; Stock surges 2%

Within the Communication Cables segment, there is an increase of 8% in volumes during the quarter, with most product lines contributing to the growth except OFC.

Jun 30, 2021 10:06 IST India Infoline News Service

Finolex Cables
Finolex Cables recorded a decline in net profit by 17.99% to Rs96.08cr in the quarter ended March 2021 as against Rs117.16cr during the previous quarter ended March 2020.

However, the sales rose 41.43% to Rs921.35cr in the quarter ended March 2021 as against Rs651.44cr during the previous quarter ended March 2020.

The stock is currently trading at Rs523.60 up by Rs9.55 or 1.86% from its previous closing of Rs514.05 on the BSE.
The scrip opened at Rs530 and has touched a high and low of Rs547.50 and Rs522.30 respectively.

For the full year, profit after taxes was Rs282.9cr as against Rs402.5cr in the previous year – included in the profits of the previous year are dividends of Rs80cr (tax-free) received from associate companies.

The Board has recommended a dividend of 275% for the year, which means for every share of Rs2/- the dividend outgo would be Rs5.50.

Revenues for the quarter ended March 2021 were Rs921.4cr as against Rs651.4cr for the corresponding period in the year 2019-20, representing a 41% growth in value terms. In volume terms, Electrical Wires increased by 14%, while Power Cables declined by 18%.

Within the Communication Cables segment, there is an increase of 8% in volumes during the quarter, with most product lines contributing to the growth except OFC. New products within the FMEG sector all grew by more than 40% each. The PVC Conduit Pipe launch gives us an exciting new opportunity to strengthen the bond with customers – the first two month’s sale after launch has been encouraging.

For the full year 2020-21, sales were Rs. 2,768.1 Cr as against Rs. 2,877.3 Cr in the previous year – a decline of 3.80 %, mainly caused by COVID related lockdown in Q1. Consequently, volumes for the year are lower than what was achieved in the previous year - Electrical Wires by 10% and all Communication product lines by 1%. Newer product lines (Fans, Switchgear and Water Heaters) have all increased between 24% to 524% in volumes as compared to the previous year. In addition to the product range, and expansion of the distribution network and continued presence in visual media have all contributed to the better revenues and volumes within these product segments.

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