FINOLEX CABLES Announces Quarterly Results (3QFY20); Net Profit Up 6.2%

Wed, 19 Feb

FINOLEX CABLES has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

FINOLEX CABLES Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	7,496	7,158	7,024	-1.9%	-6.3%
Other income	Rs m	193	647	265	-59.0%	37.1%
Turnover	Rs m	7,689	7,805	7,289	-6.6%	-5.2%
Expenses	Rs m	6,400	6,314	6,100	-3.4%	-4.7%
Gross profit	Rs m	1,096	844	924	9.5%	-15.7%
Depreciation	Rs m	97	98	96	-1.6%	-0.9%
Interest	Rs m	0	2	4	60.9%	1133.3%
Profit before tax	Rs m	1,192	1,391	1,089	-21.7%	-8.6%
Tax	Rs m	432	160	283	77.1%	-34.6%
Profit after tax	Rs m	759	1,231	806	-34.5%	6.2%
Gross profit margin	%	14.6	11.8	13.2
Effective tax rate	%	36.3	11.5	26.0
Net profit margin	%	9.9	15.8	11.1

Year-on-Year Performance:

• The company's operating income during the quarter fell 6.3% on a year-on-year (YoY) basis. The expenses were down by 4.7% YoY during the same period.
• The company's operating profit declined by 15.7% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 13.2% in 3QFY20 as against 14.6% in 3QFY19.
• Depreciation charges declined by 0.9% and finance costs increased by 1133.3% YoY, respectively.
• Other income increased by 37.1% YoY during the quarter.
• Net profit for the quarter increased by 6.2% YoY. Net profit margins during the quarter increased from 9.9% in 3QFY19 to 11.1% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 1.9% on a quarter-on-quarter (QoQ) basis. The expenses were down by 3.4% QoQ during the same period.
• The company's operating profit increased by 9.5% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 13.2% in 3QFY20 as against 11.8% in 2QFY19.
• Net profit for the quarter declined by 34.5% QoQ, while net profit margins declined from 15.8% in 2QFY19 to 11.1% in 3QFY20.

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 up from Rs 362.4 to Rs 365.4, registering a Gain of Rs 3.0 or around 0.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,601.1 (up 0.1%). Over the last one year it has moved up from 16,439.0 to 16,601.1, a gain of 162 points (up 1.0%).

Overall, the S&P BSE SENSEX is up 16.1% over the year.

Current Valuations

At the current price of Rs 365.4, the price to earnings (P/E) ratio of FINOLEX CABLES stands at 15.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.3 times.