For the year ended March 2008, the company has reported revenue growth of 34% Y-o-Y to Rs 1383.77 crore with OPM of 9.5% after a dip of 200 bps. The net profit at the end stood at Rs 88.90 crore, up 29% on Y-o-Y.

For the quarter ended March 2008, the company has reported 45% decent growth in net revenue to Rs 423.21 crore on the back of 22% Y-o-Y growth in Electrical Cables revenue (42% of total segmental revenue) and 86% Y-o-Y growth in communication cables. However, the OPM of the company dipped by 150 bps to 4.9% on account of forex loss of Rs 3.6 crore for the year booked on foreign exchange/hedge contracts and provision of Rs 9.2 crore on outstanding foreign exchange/hedge contracts, included in other expenses. The other expenditures have increased by 400 bps to 16.1% of net revenue (net of stock adjustments). The resulting operating profit stood at Rs 20.66 crore, 11% higher on Y-o-Y. The other income for the quarter was NIL against Rs 3.60 crore in corresponding previous quarter.

After considering the interest cost of Rs 4.94 crore (34% up on Y-o-Y) and depreciation charges of Rs 6.80 crore (1% lower on Y-o-Y), the PBT stood at Rs 8.92 crore, 24% lower on Y-o-Y. There was net tax credit of Rs 1.07 crore for the quarter against tax expense of Rs 3.06 crore in corresponding previous quarter. At the end the PAT for the quarter stood at Rs 9.99 crore, 16 higher on Y-o-Y.

For the year ended Mar’08, Finolex Cables has reported revenue growth of 34% Y-o-Y to Rs 1383.77 crore. As a percentage of sales (net of stock adjustment) the cost of raw material consumed has increased by 230 bps to 77.6%, which depressed the OPM by 200 bps to 9.5%. The operating profit stood at Rs 131.55 crore, 11% higher on Y-o-Y.

Other Income for the year stood at Rs 34.13 crore, 74% higher on Y-o-Y. The interest cost and depreciation charges for the year stood at Rs 18.93 crore and 26.47 crore respectively, 28% higher and flat on Y-o-Y. The PBT stood at Rs 120.28 crore, up 24% on Y-o-Y. The provision for tax has increased by 12% Y-o-Y to Rs 31.38 crore (the effective tax rate declined by 280 bps to 26.1%) and resulted PAT stood at Rs 88.90 crore, up 29% on Y-o-Y.

Electrical Cables

The revenue from Electrical cables segment for the quarter ended March 2008, (42% of total revenue), increased by 22% Y-o-Y to Rs 241.86 crore and the segmental PBIT (79% of total PBIT) stood at Rs 41.41 crore (up 125% on Y-o-Y) with PBIT margin of 17.1% (9.3% in corresponding previous quarter). The capital employed in this segment stood at 290.08 crore, up 34% Y-o-Y on 31^st March 2008, indicating volume growth in the forthcoming quarters.

Communication Cables

The revenue for Q4 FY08 from communication cables segment (16% of total revenue) stood at Rs 89.83 crore, up 86% on Y-o-Y. The PBIT from the segment stood at Rs 7.25 crore, 806% higher on Y-o-Y with PBIT margin of 8.1%. The capital employed in this segment stood at 255.58 crore, up 5% Y-o-Y on 31^st March 2008.

Copper Rods

For Q4 FY08, the revenue from copper rods segment (41% of total revenue) stood at Rs 232.59 crore, up 74% on Y-o-Y. The PBIT from the segment stood at Rs 5.85 crore with PBIT margin of 2.5%. The capital employed in this segment stood at 12.91 crore, up 7% Y-o-Y on 31^st March 2008.

The high voltage power cable plant at Urse, for application up to 66 KV rating, is undergoing final trials. The manufacturing facility of light duty electrical cables at Roorkee will start commercial production from May 2008.

The shares of Finolex Cables are currently quoting at around Rs 68 (LTP on 29^th April 2008) at BSE.