The Business Bytes
Pune, May 24, 2024 (TBB Bureau): Finolex Cables Ltd. (FCL) announced its financial results for the fourth quarter (Q4) and full year of 2023-24 (FY24), showcasing robust revenue growth and improved profitability amidst market expansion and new product developments.
In the fourth quarter ending March 31, 2024, Finolex Cables reported revenues of Rs. 1401.2 Cr, marking a significant 15% increase from Rs. 1224.3 crore in the corresponding period of the previous year. The growth was primarily driven by a 15% rise in Electrical Wires volume and a remarkable 50% surge in Cables volume. Additionally, most product lines within the Communication Cables segment witnessed an average volume increase of 14%. The introduction of new products within the FMEG sector also contributed to the positive momentum, although Lighting products faced challenges due to price erosion.
For the full fiscal year 2023-24, Finolex Cables recorded sales of Rs. 5014.4 crore, reflecting a notable 12% improvement from Rs. 4481.1 crore in the previous year. Despite volatile commodity prices throughout the year, the company managed to sustain growth, with Electrical Wires volume increasing by 15% and Cables volume by 26%. However, OFC volumes experienced a decline of 30% due to delays in government and private tenders. Nonetheless, revenue from new products surpassed Rs. 225 Cr, indicating a 15% growth, supported by expanded product offerings and distribution network.
Profits before taxes for the fourth quarter stood at Rs. 196.1 crore, showcasing a commendable 13% increase from Rs. 173.5 crore in the previous year, attributed to volume-led growth and strategic pricing actions. Similarly, for the full fiscal year, profit before taxes surged to Rs. 752.9 crore, up by 17% from Rs. 646 crore in the previous year.
Quarterly Profit after taxes (PAT) for 2023-24 reached Rs. 146.2 crore, a 9% improvement from Rs. 134.6 crore in the corresponding period of the previous year. Annual PAT witnessed a substantial growth of 14%, totalling Rs. 571.6 crore compared to Rs. 501.7 crore in the previous fiscal year.
The Board of Directors has recommended a dividend of 400% for the year, translating to an outgo of Rs 8 per share of Rs 2. This decision reflects the company’s strong financial performance and commitment to shareholder value.
Looking ahead, Finolex Cables remains focused on its expansion plans, with progress reported on the E-Beam facility and Preform manufacturing plant. The company expects market offerings from the E-Beam facility to commence by August/September 2024, while Phase I of the Preform facility is anticipated to be operational by Jan/Feb 2025. Overall, the capex for these initiatives is projected to remain within the previously estimated figures.
With a solid financial foundation and strategic investments in place, Finolex Cables is poised for sustained growth and value creation in the coming years.
