Finolex cables, one of India’s major manufacturer of electrical and communication cables, reported 10.7% lower Sep-20 quarter top line sales revenues at Rs639.41cr. Finolex services the electrical cables segment predominantly and their business demand is largely industrial in nature. That explains the sharp fall in top line and bottom line in Jun-20 quarter.
For the Sep-20 quarter, the operating profits were down 6.46% at Rs81.57cr. However, the operating margin or OPM was marginally higher moving from 12.18% in the Sep-19 quarter to 12.76% in the Sep-20 quarter on the back of a lower sales base.
Profit after tax (PAT) for the Sep-20 quarter was down 19.28% at Rs102.39cr. This resulted in PAT margins contracting from 17.72% to 16.01% in Q2 on a yoy basis.
Financial highlights for Sep-20 compared yoy and sequentially
|
|
Finolex Cables |
|
|
|
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
639.41 |
715.76 |
-10.67% |
377.12 |
69.55% |
|
Operating Profit |
81.57 |
87.20 |
-6.46% |
24.52 |
232.67% |
|
Profit After Tax (PAT) |
102.39 |
126.84 |
-19.28% |
44.49 |
130.14% |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
₹ 6.69 |
₹ 8.29 |
|
₹ 2.91 |
|
|
Operating Margins |
12.76% |
12.18% |
|
6.50% |
|
|
PAT Margins |
16.01% |
17.72% |
|
11.80% |
|
Key takeaways from the Sep-20 quarter results
-
Electrical cables are the principal product of Finolex Cables. It accounts for 67% of the revenues of Finolex Cables but a whopping 95% of the EBIT profits of the company. Hence, the impact of COVID on industrial demand hurt the company and also bottom line. As a strategy, the company is now focusing more on distribution.
Related Tags: