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Finolex Cables Q2 FY-24 Financials: PAT Soars to 2.78x, Top Line Surges 9% YoY

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Finolex Cables Limited [NSE: FINCABLES, BOM: 500144], an Indian manufacturer of cables, copper rods, switchgear and FMEG products, has announced its financials for Q2 of FY-24.

Company’s Shares Gain over 2% Backed by Strong Q2 FY-24 Results, Volume of Trades Quadruples

Post the announcement of its Q2 FY-24 financials, Finolex Cables witnessed a 2.04% increase in its share price. Further, the volume of share trades of the company grew to 23,82,000 from 5,63,000 after the company disclosed its quarterly results.

Finolex Cables’ Q2 FY-24 Standalone Financial Numbers

Finolex Cables reported a standalone revenue of Rs. 1,187.44 crore from operations for Q2 of 2023-24. The company’s Profit After Tax (PAT) for this period stood at Rs. 165.39 crore.

Earnings Per Share (EPS) of the company during Q2 of FY-24 was reported as Rs. 10.81 on a standalone basis.

Finolex Cables’ Q2 FY-24 Consolidated Financial Performance

YoY Comparison of Finolex Cables’ Financials: Q2 FY-24 vs. Q2 FY-23

Comparison of Finolex cable’s Financials: Q2 FY23 vs. Q2 FY24 vs. Q1 FY24

On a Year-over-Year basis, Finolex Cables’ Q2 top line grew by 8.86% YoY to Rs. 1,187.44 crore in FY-24 from Rs. 1,090.83 crore during FY-23.

However, there was a remarkable growth in the company’s bottom line, which soared to Rs. 154.18 crore in Q2 of 2023-24 from Rs. 55.37 crore during 2022-23. This reflects a YoY increase in Q2 PAT to 2.78 times its value from FY-23.

Finolex Cables’ EPS grew to Rs. 10.08 in Q2 of FY-24 from Rs. 3.62 reported for Q2 of FY-23.

QoQ Comparison of Finolex Cables’ Financial Results: Q2 FY-24 vs. Q1 FY-24

Finolex Cables’ revenue shrank by a modest 1.40% from its top line of Rs. 1,204.25 crore in Q1 FY-24.

Considering the company’s QoQ trend in profit, a slight decrease by 3.90% in PAT is evident from Rs. 160.43 crore, clocked during Q1 of FY-24.

Finolex Cables’ Segment-Wise Revenue Analysis

Comparison of Finolex cable’s segment-wise Financials: Q2 FY23 vs. Q2 FY2

Electric Cables: In Q2 of FY-24, this segment contributed 60.75% to the company’s gross revenue, that is, the sum of segmental revenues without subtracting inter-segmental revenue.

There was a healthy YoY growth of 12.54% in Finolex Cables’ Q2 electrical cables segmental revenue, to Rs. 988.54 crore in FY-24 from Rs. 878.40 crore in FY-23.

In its earnings presentation for Q2 FY-24, the company mentioned that in terms of volume of sales, electrical wires were up by 10% while electrical cables were up by 37% YoY.

Communication Cables: The company’s revenue from its communication cables vertical shrank substantially by 13.97% YoY to Rs. 136.47 crore in Q2 of FY-24 from Rs. 158.63 crore reported for Q2 of FY-23.

Finolex Cables’ justified this fall in revenue by stating that work under the BharatNet project is expected, for which the Government has not yet floated tenders. This has led to YoY decline in the company’s Q2 revenue from its Optical Fibre Cable offerings.

However, Finolex added that Q2 revenue from its metal-based communication cables remained stable YoY.

Copper Rods: This segment exhibited the strongest YoY growth in revenue to Rs. 447.25 crore in Q2 of FY-24, which is 70.97% YoY higher than Finolex’s Copper rod revenue of Rs. 261.60 crore for Q2 of FY-23.

Others: Finolex Cables’ switchgear, Fast Moving Electrical Goods (FMEG), conduits & pipes business falls under this segment.

The company registered a 13.66% YoY growth in Q2 revenue from its ‘others’ segment to Rs. 54.85 crore in FY-24 from Rs. 48.26 crore in FY-23.

The company clarified that this growth is backed by major volume growth in Lighting & Conduit products. However, there was a drop in sales volume in case of other appliances.

About Finolex Cables Ltd.: Finolex Cables has manufacturing facilities at Pimpri and Urse in Pune, Goa, and Roorkee, Uttarakhand. The company reported a consolidated revenue of Rs. 4,481.11 crore for the 2022-23 financial year.