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.

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.