Had there been no EO loss, the net profit of the company would be Rs 29.6 crore for the quarter.

For the quarter ended June 2008, the company has reported 33% growth in net revenue to Rs 401.81 crore on the back of 21% Y-o-Y growth in Electrical Cables revenue (42% of total segmental revenue) and 33% Y-o-Y growth in copper rods revenue to Rs 254.43 crore. The OPM of the company also improved by 220 bps to 11.8% which is appreciable considering surging raw material cost scenario in the industry. In fact the cost of raw material consumed dipped by 450 bps to 76.7% which was partially offset by 200 bps increase in other expenses to 8.5% of net adjusted revenue. The resulting operating profit stood at Rs 47.49 crore, 63% higher on Y-o-Y. The other income for the quarter declined by 41% to Rs 10.49 crore.

After considering 27% increase in interest cost to Rs 5.85 crore and 2% increase in depreciation charges to Rs 6.55 crore, the PBT before EO stood at Rs 45.58 crore, 27% higher on Y-o-Y. There was EO expenses of Rs 34.15 crore against EO income of Rs 6.74 crore in corresponding previous quarter, both related to loss and gain on outstanding foreign exchange/ derivative contracts. After considering EO the PBT stood at Rs 11.43 crore, 73% lower on Y-o-Y. The tax expenses for the quarter stood at Rs 4.00 crore against Rs 9.25 crore in Q1 FY08 while the effective tax rate over PBT after EO increased to 35% against 21.6% in Q1 FY08. At the end the PAT for the quarter stood at Rs 7.43 crore, down 78% 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 260 bps to 77.8%, which depressed the OPM by 110 bps to 10.4%. The operating profit stood at Rs 144.36 crore, 22% 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 before EO stood at Rs 133.09 crore, up 37% on Y-o-Y. After considering EO expense of Rs 12.83 crore against NIL in corresponding previous quarter, the PBT after EO stood at Rs 120.26 crore, 24% higher 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 88.88 crore, up 29% on Y-o-Y.

Electrical Cables

The revenue from Electrical cables segment for the quarter ended June 2008, (42% of total revenue), increased by 21% Y-o-Y to Rs 231.13 crore and the segmental PBIT (77% of total PBIT) stood at Rs 41.86 crore (up 57% on Y-o-Y) with PBIT margin of 18.1% (14% in corresponding previous quarter). The capital employed in this segment stood at 386.66 crore, up 48% Y-o-Y on 30^th June 2008, indicating volume growth in the forthcoming quarters.

Communication Cables

The revenue for Q1 FY09 from communication cables segment (10% of total revenue) stood at Rs 55.53 crore, up 8% on Y-o-Y. The PBIT from the segment stood at Rs 4.76 crore, 240% higher on Y-o-Y with PBIT margin of 8.6%. The capital employed in this segment stood at 276.92 crore, up 17% Y-o-Y on 30^th June 2008.

Copper Rods

For Q1 FY09, the revenue from copper rods segment (46% of total revenue) stood at Rs 254.43 crore, up 33% on Y-o-Y. The PBIT from the segment stood at Rs 6.84 crore with PBIT margin of 2.7%. The capital employed in this segment stood at 83.28 crore, up 83% Y-o-Y on 30^th June 2008.

The shares of Finolex Cables are currently quoting at around Rs 53 (LTP on 1^st August 2008) at BSE.