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Finolex Cables Q1 FY-24 Financials: Revenue Grows 19%, PAT Shoots up 34% YoY

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Finolex Cables Limited [NSE: FINCABLES, BOM: 500144], has announced its financial results for the quarter ended 30th June 2023.

“Near-term target for appliances would be to reach Rs. 500 crore” – Finolex Cables CFO

In an interview with ETMarkets, Mr. Mahesh Viswanathan, CFO of Finolex Cables, stated that the company is targeting a revenue of Rs. 500 crore from its appliances business. He added that the company expects to achieve this milestone in a period of 24 to 30 months.

Speaking about the company’s strategy in this direction, Mr. Viswanathan stressed that appliance business depends heavily on the strength of distribution network.

Over the past 24-30 months, we have appointed distributors in approximately 585 districts with a potential to service 175,000 retailers on a weekly or fortnightly basis. Our near-term target is to expand this coverage to around 650-675 districts which will improve retailer coverage further, he explained.

Finolex Cables’ Standalone Financial Numbers for Q1 of FY-24

Comparison of Finolex cable’s Financials: Q1 FY23 vs. Q1 FY24 vs. Q4 FY23

For the quarter ended 30th June 2023, Finolex Cables reported a standalone revenue of Rs. 1,204.25 crore from its operations. The company reported a corresponding Profit After Tax (PAT) of Rs. 132.24 crore on a standalone basis.

Further, Finolex Cables’ Earnings Per Share (EPS) were logged as Rs. 8.65 during Q1 of FY-24.

Finolex Cables’ Q1 FY-24 Consolidated Financial Performance

YoY Comparison of Finolex Cables’ Financials: Q1 FY-24 vs. Q1 FY-23

On a Year-over-Year (YoY) basis, the company’s consolidated revenue from operations grew by 18.57% to Rs. 1,204.25 crore in Q1 of FY-24 from Rs. 1,015.65 crore logged during Q1 of FY-23.

Following similar trend, PAT soared remarkably by 34.14% to Rs. 160.43 crore in Q1 of FY-24 from Rs. 119.60 crore clocked during Q1 of FY-23.

Consequently, Finolex Cables’ EPS grew to Rs. 10.49 in Q1 of FY-24 from Rs. 7.82 in Q1 of FY-23.

QoQ Comparison of Finolex Cables’ Financial Figures: Q1 FY-24 vs. Q4 FY-23

Finolex Cables’ Q1 FY-24 revenue from operations showed little change from its Q4 FY-23 revenue of Rs. 1,224.32 crore, falling marginally by 1.64%.

The company’s fall in PAT was more pronounced, with profit falling by 8.33% from Rs. 175 crore clocked during Q4 of FY-23.

Finolex Cables’ Segment-wise Revenue Comparison

Revenue in Cr.

Comparison of Finolex cable’s segment-wise Financials: Q1 FY23 vs. Q1 FY24

Electrical Cables: Finolex Cables’ reported Rs. 1,011.49 crore as its revenue from its electrical cable segment during Q1 of FY-24 against a revenue of Rs. 826.51 crore, which was reported for Q1 of FY-23. Therefore, this business segment exhibited a substantial YoY growth of 22.38%.

Communication Cables: The company reported Rs. 136.52 crore as its revenue from its communication cables segment during Q1 of FY-24. Thus, Finolex Cables’ revenue from this segment has remained largely flat YoY, exhibiting a slight increase of 2.22% from Rs. 133.56 crore logged for Q1 of FY-23.

Copper Rods: Finolex’s Copper rods business brought in Rs. 383.09 crore to the company’s top line in Q1 of FY-24 against Rs. 299.25 crore in Q1 of FY-23. Therefore, there has been a healthy 28.02% growth in this segment.

Others: This segment comprises the company’s switchgear, Fast Moving Electrical Good (FMEG), and electrical conduits & pipes business.

This segment was the only one where the company’s revenue shrunk YoY, dropping by 7.52%. In the opening quarter of FY-24, the company clocked Rs. 46.48 crore from this business segment against Rs. 50.26 crore earned during Q1 of FY-23.

“Volume Growth in the Quarter Broad-Based” – Finolex Cables

Finolex Cables’ corporate presentation for its Q1 FY-24 financials states that volume of cable & wire sales has exhibited YoY growth.

While Finolex’s volume growth in its wires sales has been by 29%, the company’s sales volume in case of metal-based communication cables and Optical Fibre Cables (OFCs) grew by 17% and 50% respectively.

About Finolex Cables Ltd.: Finolex Cables is a major player in the Indian cable industry. The company has manufacturing facilities at Pimpri and Urse in Pune, Goa and Roorkee, Uttarakhand.