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With advent of the new economy, one expected jelly filled telecom cable (JFTC) manufacturers to be laggards in the telecom equipment industry. However, Finolex Cables Ltd. (FCL) has outperformed industry peers, especially optic fibre cable manufacturers. With optic fibre (OF) prices turning unremunerative Aksh Optifibre Ltd. and Sterlite Optical Technologies Ltd. have reported sharp slump in sales and complete erosion in profits.
With most players singed in the telecom equipment business, Finolex Cables Ltd. (FCL) has salvaged a reasonable performance. Having said that, with approval from the High Court, FCL has amalgamated the optic fibre cable subsidiary, Finolex technologies Ltd. with itself. Consequently, the results are not entirely comparable. Revenues were higher by 10% and profits down 22% for the first nine months of FY02.
For the quarter ended December '01, Finolex Cables Ltd. has declared significantly improved results as compared to the preceding quarter. Strong growth in the first and third quarter has salvaged sales for the first nine months of the current fiscal. The second quarter was a wash out for the company, as Bharat Sanchar Nigam Ltd. (BSNL) delayed their purchase of telecom cables.
The operations of Finolex Cables Ltd. has received a jolt in the quarter ended September '01 leading to a significant de-growth in business.
Finolex Cables has registered a modest topline growth for FY01. The company recorded 13.5% turnover growth for 4QFY01. The company sales seem to have witnessed volatility in the fiscal ended March '01, as 2Q and 4Q were the only quarters with double-digit growths in FY01.
The continuing strong demand for optic fibre and cable has enabled Sterlite Optical Technologies Ltd. (SOTL) to report a topline growth of 40%. Optic fibre and cables grew by 192% and contributed 62% to the turnover as compared to 30% in the corrseponding quarter of the previous year.
Sterlite Optical Technologies (SOT) has reported its maiden quarter results. The company has shown strong topline growth on the back of healthy optic fibre (OF) and optic fibre cable (OFC) demand. Optic fibre business contributed 61% of the revenues, up from 35%.
Finolex cables has reported a strong growth in topline. However, the results include the amalgamation of the wholly owned subsidiary - Fonram Sheets Ltd. Therefore, the results are not entirely comparable with earlier the performance.
Sterlite Industries, the non-ferrous and telecom cable major, has undergone a business restructuring process. Under the new structure the operations of the business have been demerged into two separate companies. Sterlite Industries Ltd. (SIL) and Sterlite Optical Technolgies Ltd (SOT).
Sterlite Industries has posted a 51% growth in net profits for the year ended 30th June 2000. The company has benefited from fast growth in sales of copper and optical fiber cables.
MTNL is a near monoploy telecom services provider in two major markets-Delhi and Mumbai, which together account for 28% share in the domestic market.
Usha Beltron Ltd. is engaged in the manufacture of telecommunication equipment and related items.
Usha Beltron of the Jhawar group is in talks for acquiring a stake in Caltiger.com Calcutta’s private Internet Service Provider (ISP).
Usha Beltron has posted a 57% decline in net profits during the quarter ended 31st December 1999. The company has suffered a deterioration in operating margins. The rise in other income and the decline in depreciation and interest expenditure has failed to stem the decline in bottomline.
Sterlite Industries has posted a sharp 65% jump in net profits during the quarter ended 31st December 1999. The company has benefited from an improvement in operating margins as realisations grew faster than raw material costs. The quality of the company's earnings has improved in view of the decline in other income.
RPG Cables has posted a 515% rise in net profits during the quarter ended 31st December 1999. The company has benefited from a sharp decline in interest and depreciation expenditures. However, the company has suffered a decline in operating margins. Moreover, the tax outgo, as compared to nil last year, has suppressed profit growth.
Birla Ericsson has posted a decline of 54% in net profit to Rs 18.8 m in 3QFY2000. The company's revenues fell 24% to Rs 419.6 m.
Universal Cables has posted a loss of Rs 21.0 m in 3QFY2000. Sales have also declined by 17.5% to Rs 357.4 m.
Vindhya Telelinks has posted a marginal decline of 1.2% in net profit in 3QFY2000. Net sales fell 5.6% to Rs 801.1 m.
Usha Beltron Limited has posted a sharp jump in net profits at Rs 100 m for the quarter ended 30th September 1999. The company has benefited from a large increase in other income and a decline in interest expenditure.
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