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FINOLEX CABLES Announces Quarterly Results (1QFY21); Net Profit Down 57.1%

Thu, 10 Sep

FINOLEX CABLES has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

FINOLEX CABLES Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	8,077	6,514	3,771	-42.1%	-53.3%
Other income	Rs m	220	587	225	-61.7%	2.3%
Turnover	Rs m	8,297	7,101	3,996	-43.7%	-51.8%
Expenses	Rs m	7,017	5,643	3,426	-39.3%	-51.2%
Gross profit	Rs m	1,060	871	345	-60.3%	-67.4%
Depreciation	Rs m	99	96	100	4.7%	1.2%
Interest	Rs m	2	7	2	-76.7%	-22.7%
Profit before tax	Rs m	1,179	1,355	468	-65.4%	-60.3%
Tax	Rs m	363	183	119	-35.4%	-67.3%
Profit after tax	Rs m	816	1,172	350	-70.1%	-57.1%
Gross profit margin	%	13.1	13.4	9.2
Effective tax rate	%	30.8	13.5	25.3
Net profit margin	%	9.8	16.5	8.8

Year-on-Year Performance:

• The company's operating income during the quarter fell 53.3% on a year-on-year (YoY) basis. The expenses were down by 51.2% YoY during the same period.
• The company's operating profit declined by 67.4% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 9.2% in 1QFY21 as against 13.1% in 1QFY20.
• Depreciation charges increased by 1.2% and finance costs declined by 22.7% YoY, respectively.
• Other income increased by 2.3% YoY during the quarter.
• Net profit for the quarter declined by 57.1% YoY. Net profit margins during the quarter declined from 9.8% in 1QFY20 to 8.8% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 42.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 39.3% QoQ during the same period.
• The company's operating profit declined by 60.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 9.2% in 1QFY21 as against 13.4% in 4QFY20.
• Net profit for the quarter declined by 70.1% QoQ, while net profit margins declined from 16.5% in 4QFY20 to 8.8% in 1QFY21.

To see how FINOLEX CABLES has performed over the last eight quarters,please visit here.

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FINOLEX CABLES Share Price Performance

Over the last one year,FINOLEX CABLES share price has moved down from Rs 372.9 to Rs 280.1, registering a Loss of Rs 92.8 or around 24.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 13,815.1 (up 1.2%). Over the last one year it has moved down from 17,257.9 to 13,815.1, a gain of 3,443 points (down 19.9%).

Overall, the S&P BSE SENSEX is up 3.6% over the year.

Current Valuations

At the current price of Rs 280.1, the price to earnings (P/E) ratio of FINOLEX CABLES stands at 12.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.8 times.