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Unistar’s FY-24 Financials: Revenue Shrinks 8%, CapEx Planned

Universal Cables Unistar logo

Universal Cables Limited (Unistar) [NSE: UNIVCABLES, BOM: 504212], part of the MP Birla Group, and an Indian cable manufacturer, has announced its financial results Q4 of FY-24 and the entire FY-24.

Universal Cables’ Standalone Financial Results: Q4 of FY-24 and FY-24

Universal Cables has posted a standalone revenue of Rs. 580.33 crore during fourth quarter of FY-24 and a Profit After Tax (PAT) of Rs. 26.01 crore during Q4 of FY-24. Further, the company’s Earnings Per Share (EPS) during closing quarter of FY-24 stood at Rs. 7.50.

During entire FY-24, the company’s revenue from operations was Rs. 2,020.67 crore and PAT was Rs. 54.26 crore. Unistar’s EPS were Rs. 15.64 during financial year 2023-24.

Unistar’s Consolidated Financials for Q4 of FY-24 and FY-24

YoY Comparison of Universal Cables’ Numbers: Q4 FY-24 vs. Q4 FY-23 & FY-24 vs. FY-23

Universal cables Revenue Comparison: Q4 FY-23 vs. Q4 FY-24 & FY-23 vs. FY24

Universal Cables’ consolidated quarterly revenue remained almost flat, showing a negligible increase of 0.44% to Rs. 580.33 crore during Q4 of FY-24 from Rs. 582.87 crore in Q4 of FY-23. The company’s PAT grew to Rs. 48.57 crore in last quarter of FY-24, exhibiting an YoY increase of 18.29% from Rs. 41.06 crore during Q4 of FY-23.

Universal cables PAT Comparison: Q4 FY-23 vs. Q4 FY-24 & FY-23 vs. FY24

Considering the full financial year 2023-24, Universal Cables’ revenue dropped by 8.23% to Rs. 2,020.67 crore from Rs. 2,201.95 crore which was reported for FY-23. The company’s PAT also showed a decrease of 8.40% to Rs. 108.22 crore during FY-24 from Rs. 118.15 crore in FY-23.

Moreover, the company’s Q4 FY-24 EPS stood at Rs. 14 and for the entire financial year 2023-24, Universal Cables’ EPS were reported as Rs. 31.19.

Universal cables Revenue: Q3 FY-24 vs. Q4 FY-24
Universal cables PAT: Q3 FY-24 vs. Q4 FY-24

QoQ Comparison of Unistar’s Financials: Q3 of FY-24 vs. Q4 of FY-24

On a Quarter-over-Quarter (QoQ) basis, Universal Cables’ revenue from operations saw a healthy increase of 24.39% from Rs. 466.54 crore logged during Q3 of FY-24. Further, the company’s Q4 FY-24 PAT was 2.03 times of its PAT during Q3 of FY-24. Universal Cables reported a PAT of Rs. 23.96 crore during Q3 of FY-24.

Universal Cables’ Expansion Plan and Investment Details

The company shared its plans for ‘organic’ expansion at its factories in Satna in Madhya Pradesh and Verna in Goa in its stock filing dated 17th May 2024. The company’s board has approved an investment of Rs. 277 crore towards this expansion. Universal Cables will fund this expansion through a combination of internal accruals and long-term debt & equity.

At its Satna factory, the company targets to increase its power cables manufacturing capacity to about 27,100 Km to 28,350 Km per annum from the current 21,450 Km per annum. Further, manufacturing capacity for PVC compounds for wires & cables will be expanded to about 8,100 Metric Tonne (MT) to 9,000 MT per annum for the current 5,400 MT per annum.

Additionally, at Universal Cables’ Verna plant, the manufacturing capacity for Building Wires, Multicore Flexible Cables and Insulated Winding Wires will be expanded to approximately 2,50,000 Km per annum from the current 75,000 Km per annum.

This expansion will be executed in phases, and is expected to be commissioned between July 2025 and March 2026.

Mentioning the rationale behind this expansion, the company stated that this capacity addition will cater to the growing demand for power cables, insulated winding wires, multicore flexible cables and building wires. “The power cable industry has seen a significant increase in demand in recent past and there is a visible grown momentum across all product range of wires and cables manufactured by the Company, which provides adequate comfort to proposed Capex”, stated Universal Cables.

Board of Directors Recommends FY-24 Dividend to Shareholders

The Board of Directors of Universal Cables has proposed a 30% final dividend for the 2023-24 fiscal to be paid to the company’s shareholders. This equates to Rs. 3 per equity share. If approved by shareholders of the company at Universal Cables’ upcoming Annual General Meeting (AGM), dividend will be paid out within 30 days from the announcement of the approved dividend.

About Universal Cables Limited: Established in 1962, Universal Cables Limited is a major Indian manufacturer of Electrical Cables. These include Low Voltage, Medium Voltage, and Extra High Voltage XLPE Power Cables up to 500 KV grade, PVC and Rubber Insulated Power Cables upto 11 KV grade, Control and Instrumentation Cables, and more. The company also deals in the manufacturing of Power Capacitors in Low Tension / Low Voltage and high Tension / High Voltage ranges. The company also has an EPC division to execute turnkey contracts.