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Finolex Cables has reported revenue growth of 21% to Rs 334.06 crore. The OPM have declined by 260 basis points to 11.7% as company’s margins in all division expect communication cable have declined. Due to fall in margins operating profit has declined marginally by 1% to Rs 39.11 crore. Company has reported other income of Rs 10.77 crore as compared to Rs 0.96 crore in corresponding quarter in previous year. The sharp growth in other income was due to foreign exchange gain of Rs 4.21 crore on working capital loans and project loans. Net profits of the company have posted growth of 33% to Rs 58.61 crore.
Quarterly Results
For the quarter ended Sep’07 finolex cables has reported revenue growth of 21% to Rs 334.06 crore. The OPM have declined by 260 basis points to 11.7% as company’s margins in all division expect communication cable has declined. Due to fall in margins operating profit has declined marginally by 1% to Rs 39.11 crore. Company has reported other income of Rs 10.77 crore as compared to Rs 0.96 crore in corresponding quarter in previous year. The sharp growth in other income was due to foreign exchange gain of Rs 4.21 crore on working capital loans and project loans.
Interest expenses have increased by 10% to Rs 4.23 crore. Provision for depreciation has increased marginally by 1% to Rs 6.56 crore. PBT was up by 29% to Rs 39.09 crore. Provision for tax was up by 41% to Rs 12.29 crore. Thus net profit of the company was up by 25% to Rs 26.8 crore.
Half-Year Results
For the half-year ended Sep’07 finolex cables has reported revenue growth of 30% to Rs 636.44 crore. The OPM have declined by 240 basis points to 10.7% as company’s margins in electrical Cable and other division has declined. Nevertheless benefit of revenue growth has percolated into profitability and as a result operating profit has reported growth of 7% to Rs 68.17 crore. Company has reported other income of Rs 35.42 crore as compared to Rs 14.51 crore in corresponding quarter in previous year reporting growth of whopping 144%. The sharp growth in other income was due to foreign exchange gain of Rs 10.15 crore on working capital loans and project loans.
Interest expenses have increased by 23% to Rs 8.82 crore. Provision for depreciation has increased marginally by 1% to Rs 12.96 crore. PBT was up by 40% to Rs 81.81crore. Provision for tax was up by 63% to Rs 23.2 crore. Thus net profit of the company was up by 33% to Rs 58.61 crore.
Segment results
Quarter Results
a) Electrical Cable
For the quarter-ended Sep’07 the electrical cable business showed a growth in revenue of 8% to Rs 207.23 crore. PBIT margins for the segment have declined to 16.08% from 17.75%. As a result the PBIT have declined by 2% to Rs 33.32 crore. This segment contributes 43% of the total sales revenue and 88% PBIT of the company.
b) Communication cable
For the quarter-ended Sep’07 the Communication cable segment reported growth of 34% to Rs 59.18 crore. PBIT margins for the segment have improved to 4.14% from 0.86% Due to improvement in margins PBIT has zoomed by 545% to Rs 2.45 crore. This segment contributes 12% of the total sales and 6% of total PBIT of the Company.
C) Copper rods
For the quarter-ended Sep’07 the Copper rods business showed a growth in revenue of 30% to Rs 206.13 crore. PBIT margins for the segment have declined to 1.37% from 2.04%. As a result the PBIT have declined by 13% to Rs 2.83 crore. This segment contributes 43% of the total sales revenue and 7% PBIT of the company.
Half-Year Results
a) Electrical Cable
For the half –year ended Sep’07 the electrical cable business showed a growth in revenue of 14% to Rs 398.04 crore. PBIT margins for the segment have declined to 15.09% from 18.02. As a result the PBIT have declined by 5% to Rs 60.05 crore. This segment contributes 43% of the total sales revenue and 89% PBIT of the company.
b) Communication cable
For the half year ended Sep’07 the Communication cable segment reported growth of 51% to Rs 110.37 crore. PBIT margins for the segment have improved to 3.49% from 0.26% Due to improvement in margins PBIT has zoomed to Rs 3.85 crore from Rs 0.19 crore. This segment contributes 12% of the total sales and 6% of total PBIT of the Company.
C) Copper rods
For the half year ended Sep’07 the Copper rods business showed a growth in revenue of 21% to Rs 397.04 crore. PBIT margins for the segment have improved to 1.49% from 1.44%. As a result the PBIT have increased by 25% to Rs 5.91 crore. This segment contributes 43% of the total sales revenue and 9% PBIT of the company.
Other developments
Keeping in mind the high future CFL demand, the Board of Directors of the company has approved an expansion of capacity to 30 million CFLs per year at an additional expenditure of Rs 30 crore. The Company has intention to further expand the capacity to 10 crore CFLs in the medium term.
The Board of Directors has also approved expansion of various cable capacities at its Urse Plant at Capital Expenditure of Rs 30 crore.
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