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Finolex Cables’ Revenue Grows 19% YoY, Cable Segment Revenue Up 16%

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Finolex Cables Limited [NSE: FINCABLES, BOM: 500144], a major Indian player in the cables and Copper rods manufacturing space, has announced its financial results for the quarter and year ended 31st March 2023.

Finolex Cables’ FY23 Standalone Financial Results

Finolex Cables clocked a standalone revenue of Rs. 1,224.32 crore from operations during the closing quarter of the 2022-23 financial year. The company’s Profit After Tax (PAT) during this period stood at Rs. 134.58 crore.

Considering the entire fiscal, Finolex minted a standalone top line of Rs. 4,481.11 crore and a PAT of Rs. 501.74 crore during FY-23.

The company’s Earnings Per Share (EPS) for Q4 of FY-23 stood at Rs. 8.80, and at Rs. 32.81 for the entire FY-23.

Finolex Cables’ Consolidated FY23 Financial Numbers

YoY Comparison of Finolex Cables’ Financials: Q4 FY-23 vs. Q4 FY-22 & FY-23 vs. FY-22

Comparison of Finolex cable’s Financials: Q4 FY22 vs. Q4 FY23 vs. Q3 FY23

On a YoY basis, Finolex Cables’ Q4 topline grew marginally by 3.15% to Rs. 1,224.32 crore in FY-23 from Rs. 1,186.85 crore in FY-22. Further, the company’s Q4 PAT tumbled by 22.04% YoY to Rs. 175 crore in 2022-23 from Rs. 224.47 crore reported during the 2021-22 fiscal.

Taking into account the entire financial year, in FY-23 Finolex Cables clocked a top line of Rs. 4,481.11 crore, thus exhibiting a healthy 18.92% growth from its FY-22 revenue of Rs. 3,768.14 crore. Correspondingly, the company’s FY-23 PAT stood at Rs. 504.28 crore, reflecting a 15.83% shrinkage from its Rs. 599.14 crore PAT for FY-22.

Comparison of Finolex cable’s Financials: FY22 vs. FY23

For the quarter ended 31st March 2023, the company’s EPS was Rs. 11.44 against Rs. 14.68 reported for Q4 of FY-22. For the entire fiscal, Finolex Cables’ EPS was Rs. 32.97 for FY-23 as compared to Rs. 39.18 for FY-22.

QoQ Comparison of Finolex Cables’ Financial Figures: Q4 FY-23 vs. Q3 FY-23

Finolex Cables’ revenue from operations showed a slight growth by 6.43% from Rs. 1,150.31 crore, which the company had reported for the quarter ended 31st December 2022.

The company’s PAT resonated the same Quarter-over-Quarter (QoQ) trend, growing by 13.41% from Rs. 154.31 which was accrued during Q3 of the recently concluded fiscal.

Comparison of Finolex Cables’ Segment-Wise Revenue

Comparison of segmentwise Finolex cable’s Financials: FY22 vs. FY23

Electric Cables: This segment usually contributes the most to Finolex Cables’ overall revenue, and brought in 82.20% of Finolex Cables’ consolidated revenue for the 2022-23 fiscal.

Considering the full fiscal, Electric Cable segment brought in Rs. 3,683.51 crore revenue during FY-23, which shows a robust 15.35% growth from Rs. 3,193.21 crore clocked in FY-22.

Communication Cables: For the year ended 31st March 2023, Finolex Cables earned Rs. 579.04 crore as its revenue from this segment against Rs. 379.75 crore during FY-22. Therefore, Finolex’s annual revenue from Communication Cables segment grew remarkably by 52.48% YoY.

Copper Rods: Finolex Cables’ Copper rod business contributed Rs. 1,267.79 crore as revenue for FY-23. Moreover, on a YoY basis, revenue from Copper Rods segment grew impressively by 85.76% from Rs. 682.47 crore, which was logged during FY-22.

Others: This business segment comprises the company’s switchgear, FMEG, and conduit pipes businesses.

Taking the full year into consideration, Finolex Cables’ earned a revenue of Rs. 195.34 crore from this segment, which represents a 10.76% jump from Rs. 176.36 crore clocked in FY-22.

Company’s Insights on its Financial Performance

During the company’s earnings call for Q4 of FY-23, Mr. Mahesh Viswanathan, CFO of Finolex Cables, stated that the growth in profit has majorly been volume-led. He further said, “On profitability, margins stabilized. While in the first three quarters, there was a certain amount of volatility on commodity prices, which led us to take pricing actions at different points of time during the year. The margins in the fourth quarter were more or less stable. However, Mr. Viswanathan said that commodity prices still remain volatile, and as long as this trend continues, some changes in the quarter-to-quarter margins trends can be expected.

About the company’s CAPEX plans, Mr. Viswanathan said, “Fiscal ’24, I think we would be spending around INR 250 crores, and fiscal ’25 would be maybe another INR 75 crores to INR 100 crores”.

Recently Finolex invested Rs. 390 crore at its Urse plant for establishing a preforms plant and expanding its solar cable manufacturing capacity.

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.