Finolex Cables Limited , a leading manufacturer of electrical and telecommunication cables, has reported a robust 13% year-over-year increase in revenue for the first quarter. The company's performance, however, shows mixed results across different segments and metrics.

Financial Highlights

• Revenue: Rs. 1,396.00 crores, up 13% year-over-year from Rs. 1,230.00 crores
• EBITDA: Rs. 185.00 crores, an 11% increase year-over-year
• Profit After Tax (PAT): Rs. 139.00 crores, up 13% compared to the same quarter last year

Despite the overall growth, Finolex Cables experienced a sequential decline in performance compared to the previous quarter:

Segment Performance

Electrical Cables

The electrical cables segment emerged as the primary growth driver for Finolex:

• Revenue: Rs. 1,206.00 crores, a 17% year-over-year increase
• Wire volumes grew by 16%
• Power cable volumes doubled

Communication Cables

The communication cables segment faced challenges:

• Revenue: Rs. 109.00 crores, a 9% year-over-year decline
• The decrease was attributed to delays in optical fiber cable agreements with customers

Other Segments

Other segments, including appliances, also experienced a decline:

• Revenue: Rs. 62.00 crores, an 8% year-over-year decrease
• Performance was impacted by unseasonal rains affecting sales in agricultural applications

Market Factors

Finolex Cables' performance was influenced by several factors:

1. Seasonal Challenges: Unseasonal rains impacted sales across segments, particularly affecting agricultural applications and appliances.
2. Segment-Specific Issues: The communication cables segment faced headwinds due to delays in finalizing optical fiber cable agreements.
3. Strong Electrical Segment: The robust performance of the electrical cables segment, especially in wires and power cables, helped offset challenges in other areas.

Investor Communication

Finolex Cables held a conference call with analysts and investors to discuss the quarterly results. The company also released an investor presentation detailing its performance and key highlights for the quarter ended June 30.

As Finolex Cables navigates through market challenges and capitalizes on growth opportunities, investors and industry observers will be keenly watching how the company addresses the segment-specific issues and leverages its strengths in the electrical cables market for sustained growth in the coming quarters.

Finolex Cables Limited, India's leading manufacturer of electrical and communication cables, has reported mixed results for the first quarter. The company saw revenue growth, but its profit after tax showed a more modest increase.

Revenue Growth

Finolex Cables reported quarterly revenue of Rs 1,395.5 crore, up from Rs 1,230.5 crore in the corresponding period of the previous year. This represents a robust 13% growth in value terms.

Profit Increase

The company's profit after tax increased by 13% to Rs 138.8 crore, compared to Rs 122.5 crore in the same period last year.

Segment Performance

The company witnessed varied performance across its product segments:

• Electrical Wires: Volumes increased by 6%
• Power Cables: Saw a significant volume increase of 96%
• Communication Cables: Both metal-based products and Optic Fiber Cable volumes were lower than the previous year, primarily due to delays in customer agreements

Challenges and Impacts

Finolex Cables faced several challenges during the quarter:

1. Unseasonal Rains: Affected volumes in new product categories and impacted the sale of wires for agricultural applications
2. Copper Price Volatility: Selling prices were reduced in April
3. Product Mix Changes: The shift in product mix due to these factors had a negative impact on margins

Financial Highlights

Expansion Plans

The company's expansion plans for its Preform Facility have been slightly delayed. The plant is now expected to be operational by Q4 of the current fiscal year.

Earnings Per Share

Earnings per share stood at Rs 9.08 on a face value of Rs 2 per share.

Future Outlook

While the company has shown resilience in revenue growth and profit, it continues to face challenges in certain segments. Finolex Cables remains focused on growth across its diverse product portfolio. The significant increase in Power Cable volumes and the planned expansion of the Preform Facility indicate the company's commitment to strengthening its market position in the coming quarters, despite the current setbacks.