Finolex Cables (FINCABLES) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached ₹1,312 crore, up 10-11% year-over-year and 7% sequentially, despite margin pressures from copper price volatility and inventory liquidation.

• EBITDA for Q2 FY25 was ₹200 crore, up 8% year-over-year and 20% sequentially, including ₹50.24 crore dividend income from associates.

• PAT for Q2 FY25 stood at ₹146 crore, down 12% year-over-year but up 19% sequentially, impacted by lower copper prices and high-cost inventory.

• Strategic diversification into FMEG sector and ongoing infrastructure expansion to capture B2C opportunities.

• Expansion projects, including E-Beam and Preform facilities, are progressing as planned, with commissioning expected later in the fiscal year.

Financial highlights

• Q2 FY25 revenue: ₹1,312 crore (10-11% YoY, 7% QoQ); H1 FY25 revenue: ₹2,542-2,600 crore (6% YoY).

• Q2 FY25 EBITDA: ₹200 crore (8% YoY, 20% QoQ); H1 FY25 EBITDA: ₹367 crore (down 11% YoY).

• Q2 FY25 PAT: ₹146 crore (down 12% YoY, up 19% QoQ); H1 FY25 PAT: ₹269 crore (down 10% YoY).

• EBITDA and gross margins declined YoY due to input cost pressures and price adjustments.

• Earnings per share (basic and diluted): ₹9.55 for the quarter.

Outlook and guidance

• Management expects margin stabilization and recovery to around 10% in coming quarters, with a return to historical 11-12% possible if copper volatility subsides.

• FY25 revenue could approach ₹6,000 crore if trends remain steady; FMEG segment expected to reach ₹300 crore for FY25, with break-even at ₹250-260 crore.

• E-beam and preform facility commissioning expected later in FY25; capex remains within initial estimates.