The company recorded net loss of Rs 26.93 crore relating to loss on derivative transactions and forex gain (Rs 29.35 crore in Q4 FY08) The company has reversed impairment of optic fiber assets, created in FY05, amounting to Rs 27.13 crore net of depreciation, which could facilitate the company in reporting net profit of Rs 2.73 crore for the quarter (73% lower on Y-o-Y).

For the year ended March 2009, the company has reported 3% dip in revenue of Rs 1341.51 while the OPM dipped 320 bps to 7.2%. The company incurred loss of Rs 114.14 crore for the year related to loss on derivative transactions and forex loss and reversed impairment of optic fiber assets amounting to Rs 27.13 crore, after considering which, there stood loss at PAT level at Rs 35.49 crore against profit of Rs 88.941 crore.

In respect of AS 11, the company has opted to follow the provisions contained in The Companies (Accounting Standard) Amendment Rules, 2009 and accordingly capitalized the effects of changes in foreign currency on its foreign currency borrowings to the extent of Rs 19.67 crore, while debiting General reserve for another Rs 6.23 crore. Had the company not opted to follow these provisions, its losses for the year would have been higher by Rs 24.31 crore.

For the quarter ended March 2009, the revenue of the company dipped by 23% Y-o-Y to Rs 327.05 crore on the back of industry slowdown. The OPM of the company for the quarter also slipped by 70 bps to 9.7% despite of lower cost of raw material consumed for the period which dipped 360 bps to 71.8% of net adjusted revenue. However the other expenses have inched up as a % of net adjusted revenue by 260 bps to 12.4%. The company has also liquidated its some high cost inventory, as the stock in trade has declined by Rs 36.03 crore, which also resulted in pressure on OPM. The operating profit dipped 28% to Rs 31.75 crore. With loss at other income level at Rs 1.91 crore (Rs 5.82 crore in Q4 FY08), higher interest cost (14% higher at Rs 5.62 crore) and depreciation charges (127% higher at Rs 15.41 crore), the PBT before forex fluctuation & other exceptional items stood 77% lower at Rs 8.81 crore.

After considering forex fluctuation & other exceptional items of Rs 0.20 crore (including loss on derivative transactions of Rs 43.77 crore, forex gain of Rs 16.84 crore and net credit for reversal of impairment of optic fiber assets for Rs 27.13 crore) against loss of Rs 29.35 crore in corresponding previous quarter, the company recorded 1% growth at PBT level to Rs 9.01 crore. The tax expense for the quarter stood at Rs 6.28 crore (mainly due to reversal of deferred tax assets amounting to Rs 5.68 crore created earlier in relation to impaired assets) against tax credit of Rs 1.07 crore in corresponding previous quarter, after considering which the PAT stood 73% lower on Y-o-Y at Rs 2.73 crore.

For the year ended March 2009, Finolex Cables has reported revenue of Rs 1341.51 crore, down 3% on Y-o-Y. The OPM dipped 320 bps to 7.2% mainly due to increase in other expenses by 210 bps to 10.5% of net adjusted revenue and resulting operating profit stood 33% lower at Rs 97.16 crore. During the year the company has also liquidated some of its high cost inventory amounting to Rs 68.12 crore, which also put pressure on OPM. The dip in other income (30% lower at Rs 23.83 crore) coupled with increased interest cost (34% increase at Rs 25.30 crore) and higher depreciation charges (46% higher at Rs 23.35 crore), the PBT before forex fluctuation & other exceptional items stood at Rs 56.93 crore, 57% lower on Y-o-Y.

After considering forex and other exceptional losses of Rs 87.01 crore during the year (including loss on derivative transactions of Rs 87.90 crore, forex loss of Rs 26.24 crore and net credit for reversal of impairment of optic fiber assets for Rs 27.13 crore) against loss of Rs 12.83 crore FY08, there stood loss at PBT after forex gains / losses & EO level at Rs 30.08 crore against profit of Rs 120.29 crore in FY08. The tax expense for the year stood at Rs 5.41 crore (including reversal of deferred tax assets amounting to Rs 5.68 crore created earlier in relation to impaired assets) against tax expense of Rs 31.38 crore in FY08, after considering which, there stood loss at PAT level at Rs 35.49 crore against profit of Rs 88.941 crore.

Electrical Cables

The revenue from Electrical cables segment for the quarter ended March 2009, (accounting for 51% of total revenue), dipped by 11% Y-o-Y to Rs 214.07 crore while the segmental PBIT declined 41% Y-o-Y to Rs 24.32 crore with dip in PBIT margin to 11.4% against 17.1% in corresponding previous quarter.

Communication Cables

The revenue for Q4 FY09 from communication cables segment stood 33% lower at Rs 60.14 crore. However the PBIT from the segment improved 312% to Rs 29.90 crore mainly due to reversal of impairment charges.

Copper Rods

For Q4 FY09, the revenue from copper rods segment also dipped 42% Y-o-Y to Rs 134.35 crore while the PBIT from the segment dipped by 77% Y-o-Y to Rs 1.37 crore with thin PBIT margin of 1% (2.5% in Q4 FY08).

The Board of directors have recommended a dividend of 10% (Rs 0.20 per share).

During the year the company's High Voltage Power Cables project at Urse and light duty cables project at Roorkee in Uttarakhand has commenced commercial production.

The shares of Finolex Cables are currently quoting at around Rs 37 (LTP on 11^th June 2009) at BSE.