Monday, May 29, 2023

Finolex Cables Ltd. Revenues For Quarter Ended March 2023 Were Rs.1224.3 Cr As Against Rs.1186.9 Cr

Finolex Cables Ltd., (FCL) at the meeting of its Board of Directors approved results for the fourth quarter as well as the full year of 2022-23. 

Revenues for the quarter ended March 2023 were Rs.1224.3 Cr as against Rs.1186.9 Cr for the corresponding period in year 2021-22, representing a 3% growth in value terms. In volume terms, Electrical Wires increased by 7% compared to Q4 of the previous year. Within Communication Cables segment, most product lines increased in volume, by an average of 25%. Volumes in new products within the FMEG sector were affected by the changes to the energy efficiency norms which came in to effect from 1st January 2023. While input costs had begun to show moderation, the impact on margins would not be felt until another quarter. 

For the full year 2022-23, sales were Rs. 4481.1 Cr as against Rs. 3,768.1 Cr in the previous year – an improvement of 19%. During the year, commodity prices continued to remain volatile, which led to several price revisions to pass on both cost reductions as well as cost increases to the end customers, resulting in a situation where margins fluctuated every quarter. For the full year Electrical Wires grew about 16% in volume; OFC volumes grew by more than 50%, while all other products in the Communication segment grew more than 25%. As mentioned above, changes to the energy efficiency norms affected the sale of Fans during the last two quarters and impacted overall growth in the New product lines. Addition to product range, and expansion of distribution network have all contributed to the better revenues and volumes within these product segments.  

Profit for the quarter, before taxes, was Rs.173.5 Cr, as compared to Rs.126.4 Cr in the previous year – the improvement is a result of volume led growth in the major segments as well as some pricing actions to maintain margins.  

For the full year, profit before taxes stood at Rs 646.0 Cr as against Rs 526.6 Cr in the previous year – an improvement of 23 %. 

PAT for Q4 of 2022-23 stood at Rs 134.6 Cr as against Rs 104.6 Cr for the corresponding period of the previous year – an improvement of 29%.  

For the full year, profit after taxes were Rs 501.7 Cr as against Rs 404.6 Cr in the previous year – an improvement of 24%. 

At its meeting today, the Board has recommended a dividend of 350 % for the year, which means an outgo of Rs7/ per for every share of Rs 2/- the overall dividend outgo would be Rs 107.1 Cr. 

For the year ended 31st March 2023, the consolidated results reflect net sales of Rs 4481.1 Cr as against Rs 3768.1 Cr in the previous year and Profit After Taxes of Rs 504.3 Cr as against Rs 599.1 Cr in the previous year.   

The Company recently announced that it will be setting up a plant to manufacture Preforms for drawing fiber as well as enhance the fiber cabling capacity. For this purpose, Capex plans of approx. Rs. 300 Cr to be spent in fiscal 2023-24 and 2024-25 have been put in place. These plans are in addition to the already announced expansion into setting up of an E-Beam facility as well as other additions. 

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