The dip in other income (Rs 1.73 crore against 7.31 crore in Q3 FY08) and increased interest cost (45% higher at Rs 7.52 crore) and depreciation charges (30% higher at Rs 8.69 crore) coupled with forex losses of Rs 37.82 crore in Q3 FY09 (including loss on derivative transactions of Rs 14.17 crore, forex losses of Rs 13.48 crore, which include unrealized amount Rs 5.67 crore and diminution in the value of mutual fund investments amounted to Rs 10.17 crore) against forex gains of Rs 2.10 crore in corresponding previous quarter, resulted in net loss of Rs 47.458 crore at the end against net profit of Rs 20.31 crore in corresponding previous quarter.

For the quarter ended December 2008, the company has reported 26% decline in net revenue to Rs 238.44 crore. While at operating level itself the company incurred a loss of Rs 1.30 crore against profit of Rs 32.03 crore. It was mainly due to liquidation of high cost opening inventory outstanding. The company sold inventory of Rs 85.89 crore relating to previous period in this quarter which consisted higher raw material cost.

The other income for the quarter stood at Rs 1.73 crore against 7.31 crore in corresponding previous quarter while the interest cost and depreciation charges increased by 45% and 30% respectively to Rs 7.52 crore and Rs 8.69 crore, after considering which, at PBT before loss/profit from derivative transaction, forex fluctuation & other level company recorded loss of Rs 15.78 crore against profit of Rs 27.46 crore. After considering forex losses of Rs 37.82 crore in Q3 FY09 (including loss on derivative transactions of Rs 14.17 crore, forex losses of Rs 13.48 crore, which include unrealized amount Rs 5.67 crore and diminution in the value of mutual fund investments amounted to Rs 10.17 crore) against forex gains of Rs 2.10 crore in corresponding previous quarter, there stood loss at PBT after forex gains / losses level of Rs 39.09 crore against profit of Rs 111.37 crore in corresponding previous period. After considering tax credit of Rs 6.15 crore, the net loss stood at Rs 47.45 crore against net profit of Rs 20.31 crore.

For the Nine months ended Dec'08, Finolex Cables has reported revenue growth of 6% Y-o-Y to Rs 1014.46 crore. The OPM however dipped 290 bps to 7.5% and operating profit dipped by 25% to Rs 75.58 crore. The dip in other income (9% lower at Rs 25.74 crore) coupled with increased interest cost (41% increase at Rs 19.68 crore) and depreciation charges (19% higher at Rs 23.35 crore), the PBT before loss/profit from derivative transaction, forex fluctuation & other stood at Rs 58.29 crore, 39% lower on Y-o-Y.

After considering forex losses of Rs 97.38 crore in Nine months ended Dec'08 (including loss on derivative transactions of Rs 44.13 crore, forex losses of Rs 43.08 crore, which include unrealized amount Rs 28.46 crore and diminution in the value of mutual fund investments amounted to Rs 10.17 crore) against forex gains of Rs 16.52 crore in corresponding previous period related to gain on outstanding foreign exchange/ derivative contracts, there stood loss at PBT after forex gains / losses level of Rs 39.09 crore against profit of Rs 111.37 crore in corresponding previous period. The tax credit for the Nine month period stood at Rs 0.87 crore against tax expense of Rs 32.45 crore after considering which the net loss stood at Rs 38.22 crore against net profit of Rs 78.92 crore.

Electrical Cables

The revenue from Electrical cables segment for the quarter ended December 2008, (45% of total revenue), dipped by 31% Y-o-Y to Rs 130.38 crore while at PBIT level segment reported loss of Rs 4.38 crore against profit of Rs 22.98 crore.

Communication Cables

The revenue for Q3 FY09 from communication cables segment (21% of total revenue) stood at Rs 60.89 crore, down 17% Y-o-Y. The PBIT from the segment stood at Rs 1.09 crore, 85% down Y-o-Y with PBIT margin of 1.8% (9.8% in Q3 FY08).

In the Communication Cables segment, the JFTC sales for the quarter under review were minimal in comparison to the corresponding previous quarter. However, Optic Fibre Cable business showed considerable growth.

Copper Rods

For Q3 FY09, the revenue from copper rods segment (31% of total revenue) stood at Rs 90.84 crore, down 53% Y-o-Y. The PBIT from the segment dipped by 73% Y-o-Y to Rs 0.68 crore with thin PBIT margin of 0.75% (1.3% in Q3 FY08).

During the quarter the Company's Light Duty Cable Project at Roorkee in the state of Uttarakhand has commenced commercial production

The shares of Finolex Cables are currently quoting at around Rs 20 (LTP on 3^rd February 2009) at BSE.