Finolex Cable

This electrical and telecommunication cables company has posted very good numbers for Q4FY14 and FY14.  For the quarter, the company posted a 3% (YoY) rise in net sales at Rs.642 crore and net profit rose 77% (YoY) at Rs.69 crore and sequentially, it was up around 3 times. This spectacular rise in net profit can be attributed to the Rs.13 crore forex loss in previous Q4 which suppressed the profit  and the Rs.3 crore tax write back of Rs.3 crore in Q4FY14. Other income of Rs.6 crore and lower interest outgo of Rs.3 crore also helped.

The company ended FY14  with a 4% rise in net sales at Rs.2337 crore and net profit came in at Rs.208 crore, up 43%. During the fiscal, forex gain of Rs.10 crore also helped. The company has four segments, the key driver being electric cables, which during Q4, contributed 88% to net sales, showing a 3% increase YoY. Copper rods is the other segment, which contributed 2% to the revenue but showed loss at EBIT level. Communication cables is doing well, sales rising 34% (YoY) and EBIT rising 1.6 times.  Overall, it has been a good performance and the company ended FY14 with a reserves of Rs.1073 crore, up from Rs.894 crore in FY13. EPS for FY14 stood at Rs.13.6 (face value Rs.2).