Finolex Cables Limited [NSE: FINCABLES, BOM: 500144], an Indian manufacturer of electrical cables, communication cables and copper rods, has announced its financial results for the quarter ended 31st December 2022.
Finolex Cables’ Standalone Financial Numbers
Finolex Cables reported Rs. 1,150.31 crore as its standalone revenue from operations for Q3 of FY-23.
The company’s standalone Profit After Tax (PAT) earned during the aforementioned period stood at Rs. 134.87 crore.
Finolex Cables’ Consolidated Financial Performance
YoY Comparison of Finolex’s Financial Numbers: Q3 FY-23 vs. Q3 FY-22
Finolex Cables clocked a consolidated revenue of Rs. 1,150.31 crore from its operations during the third quarter of the 2022-23 financial year. This represents a healthy growth of 18.23% from the company’s Q3 revenue in FY-22 which stood at Rs. 972.95 crore.
On a Year-over-Year (YoY) basis, the company’s Q3 PAT grew slightly by 7.91% to Rs. 154.31 crore in FY-23 from Rs. 143 crore in FY-22.
QoQ Analysis of Finolex Cables’ Financial Results: Q3 FY-23 vs. Q2 FY-23
Quarter-over-Quarter (QoQ) comparison of Finolex Cables’ financials shows a slight growth of 5.45% in the company’s revenue from Rs. 1,090.83 crore earned during Q2 of the ongoing fiscal.
Finolex Cables’ PAT exhibited the most remarkable growth QoQ, with Q3 profit rocketing to 2.7 times of the company’s Q2 PAT in FY-23. Finolex’s Q2 FY-23 PAT stood at Rs. 55.37 crore.
Analysis of Finolex Cables’ Segment-Wise Revenue
Electrical Cables: For Q3 of FY-23, Finolex Cables logged Rs. 946.83 crore as its revenue from its electrical cables business. This is 82.31% of the company’s total revenue for the quarter ended 31st December 2022. Therefore, the major chunk of Finolex Cables’ revenue comes from this segment.
YoY analysis of the company’s quarterly electrical cable revenue shows a healthy growth of 14.57% from Rs. 826.40 crore which was clocked during Q3 of FY-22.
QoQ growth of 7.79% in revenue from this segment echoed the company’s financial stability. In Q2 of the ongoing fiscal, the company’s revenue from this segment stood at Rs. 878.40 crore.
Communication Cables: This segment contributed Rs. 146.89 crore to the company’s total revenue during Q3 of FY-23.
On a YoY basis, this represents an impressive growth of 59.66% in revenue from Rs. 92 crore, which was the company’s Q3 revenue from this segment during FY-22.
QoQ, this segment’s revenue saw a slight drop of 7.40% from Rs. 158.63 crore logged in Q2 of the current financial year.
Copper Rods: The company’s revenue from this segment stood at Rs. 320.74 crore in Q3 of FY-23. Finolex Cables’ Copper rods business is the second-highest contributor to its revenue, and for the third quarter of FY-23, it brought in 27.88% of the company’s consolidated revenue.
YoY, revenue from this segment grew massively, exhibiting a 75.58% growth from Rs. 182.67 crore clocked during Q3 of FY-22.
Analysing the company’s revenue from Copper rods on a QoQ basis, stable growth of 22.61% is evident, from Rs. 261.60 crore earned during Q2 of FY-23.
Others: This segment comprises Finolex Cables’ FMEG, switchgear and conduit pipes businesses.
For the third quarter of FY-23, the company reported a revenue of Rs. 51.52 crore from this segment. This is almost the same as Finolex Cables’ Q3 revenue in FY-22, which was Rs. 49.61 crore. This segment’s YoY revenue growth, therefore, has been by a meagre 3.85%.
QoQ, the company’s ‘others’ segment revenue grew slightly by 6.76% from Rs. 48.26 crore, which was earned during Q2 of the ongoing fiscal.
Finolex Management Insights on its Financial Performance
Commenting on the company’s financial performance, Mr. Mahesh Viswanathan, CFO of Finolex Cables, said, “We saw volume increase across the product chain, whilst the volume increase was about 24% (in the electrical cables segment) in the quarter. In the communication cable segment, the metal-based cables were up by about 30%, whereas optic fiber cables grew even higher.”
He further stated that while the company’s margins had suffered in Q2 of FY-23 on account of higher inventory costs, the company’s margins are now returning to normalcy. “I think overall, the business scenario seems to be getting back to normalcy. For the first time, most of our product lines are showing growth rates, which we saw last in 2019 pre-COVID. So in that sense, I think we are seeing a return to normalcy”, Mr. Viswanathan explained.
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.