Finolex Cables (FINCABLES) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 2% year-over-year to ₹1,230.5 crore, but profit after tax declined 7% to ₹122.5 crore, impacted by national elections, extreme summer, and high commodity price volatility, especially in copper.

• Expansion projects, including E-Beam and Preform facilities, are progressing as planned.

Financial highlights

• Standalone revenue from operations: ₹1,230.5 crore (Q1 FY25) vs ₹1,204.3 crore (Q1 FY24); net profit after tax: ₹122.5 crore (Q1 FY25) vs ₹132.3 crore (Q1 FY24); consolidated profit after tax: ₹243.9 crore (Q1 FY25) vs ₹160.4 crore (Q1 FY24).

• Electrical cables turnover was ₹1,031.8 crore, up from ₹1,011 crore YoY but down from ₹1,200 crore QoQ; power cable volumes up 20%, electrical wires flat.

• Communication cable segment saw 10% volume growth in optic fiber, but lower realizations due to global price pressure; revenue at ₹119.2 crore.

• FMEG and new product segments showed strong volume and value growth, with other segment revenue at ₹67.6 crore.

• Price cuts of about 10% were implemented in June, impacting operating margins.

Outlook and guidance

• Demand recovery in wires expected once copper prices stabilize; festival season may boost automotive and housing demand.

• Communication cable margins targeted to return to double digits (9%-11%) by FY26/27 if volumes improve.

• FMEG segment is on track to break even at annualized INR 250 crore revenue.

• Long-term consolidated EBITDA margin expected in the 13%-13.5% range, excluding associate dividends.

• E-Beam facility is ready for operation pending regulatory approval; Preform facility expected to be commissioned later in the fiscal year.