Finolex Cables Limited (FCL) has made a significant announcement regarding its dividend payout and tax implications for shareholders. The company's Board of Directors has recommended a substantial dividend, subject to shareholder approval, and provided comprehensive guidelines on tax deduction at source (TDS) for various categories of shareholders.

Dividend Announcement

Finolex Cables has proposed a dividend of 400%, equivalent to Rs. 8.00 per equity share, for the financial year ended March 31, 2025. This recommendation was made during the Board meeting held on May 28, 2025, and is subject to approval at the upcoming 57th Annual General Meeting.

Key Dates

• Record Date: September 5, 2025
• Deadline for Document Submission: August 31, 2025

Tax Deduction Guidelines

FCL has issued detailed guidelines on TDS applicable to different shareholder categories:

Resident Shareholders

Non-Resident Shareholders

• Standard Rate: 20% plus applicable surcharge and health & education cess
• FII/FPI: 20% plus applicable surcharge and health & education cess

Non-resident shareholders can avail benefits under the Double Tax Avoidance Agreement (DTAA) by submitting required documents.

Document Submission

Shareholders must submit necessary documentation to KFin Technologies Limited, the Registrar and Share Transfer Agent, by August 31, 2025. This ensures appropriate tax deduction rates are applied.

Online Submission Process

FCL has provided an online platform for document submission:

• Resident Shareholders: https://ris.kfintech.com/form15/
• Non-Resident Shareholders: https://ris.kfintech.com/form15/

Additional Information

• The company will use the Income Tax Department's online functionality to verify PAN status.
• For joint shareholdings, the primary beneficial shareholder's status will determine the TDS rate.
• FCL will email soft copies of TDS certificates to registered email addresses post-dividend payment.

Finolex Cables Limited has demonstrated a commitment to transparency by providing detailed information on dividend distribution and associated tax implications. Shareholders are advised to carefully review the guidelines and submit necessary documentation within the specified timeframe to ensure appropriate tax treatment of their dividend income.

Finolex Cables , a prominent player in the Indian cable manufacturing industry, saw its stock price surge by more than 5% following a bullish outlook from global investment bank Jefferies. The stock's upward movement came on the heels of the company's impressive fourth-quarter results, which exceeded market expectations.

Strong Q4 Performance

Finolex Cables reported a robust 14.00% year-on-year growth in sales for the fourth quarter, outperforming analyst estimates. This strong performance underscores the company's resilience and ability to capitalize on market opportunities despite challenging economic conditions.

Jefferies Maintains 'Buy' Rating

Impressed by Finolex Cables' financial results, Jefferies has maintained its 'buy' rating on the stock. The investment bank's positive stance is based on several factors:

1. Growth Prospects: Jefferies anticipates significant growth opportunities for Finolex Cables, particularly from the ongoing 5G rollout in India and the expanding data center market.

2. Projected Earnings Growth: The investment bank forecasts a robust 19.00% Profit After Tax (PAT) Compound Annual Growth Rate (CAGR) for Finolex Cables over the fiscal years 2025 to 2028.

3. Improved Profitability: Jefferies projects a substantial 370 basis points expansion in Return on Capital Employed (ROCE) for the company, indicating enhanced operational efficiency and profitability.

Future Outlook

The positive assessment from Jefferies, coupled with Finolex Cables' strong quarterly performance, suggests a promising outlook for the company. The anticipated growth from the 5G rollout and data center expansion aligns well with Finolex Cables' core competencies in the cable manufacturing sector .

Investors and market watchers will likely keep a close eye on Finolex Cables' future quarterly results and its ability to capitalize on the expected growth in the telecom and data center infrastructure segments. The company's performance in these areas could be crucial in determining its long-term growth trajectory and stock performance.

As always, investors are advised to conduct their own research and consider their risk appetite before making investment decisions based on analyst ratings or market movements.