Finolex Cables (FINCABLES) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached ₹1,312 crore, up 10-11% year-over-year and 7% sequentially, despite copper price volatility and high inventory.

• EBITDA for Q2 FY25 was ₹200 crore, up 8% year-over-year and 20% sequentially, including ₹50.24 crore dividend income from associates.

• PAT for Q2 FY25 stood at ₹146 crore, down 12% year-over-year but up 19% sequentially, impacted by margin pressures from lower copper prices and high-cost inventory.

• Management expects margin stabilization and continued growth in new product categories, with major CapEx projects nearing completion.

• Strategic diversification into FMEG sector and ongoing infrastructure expansion to capture B2C opportunities.

Financial highlights

• Q2 FY25 revenue: ₹1,312 crore (10-11% YoY, 7% QoQ); H1 FY25 revenue: ₹2,542 crore (6% YoY).

• Q2 FY25 EBITDA: ₹200 crore (8% YoY, 20% QoQ); H1 FY25 EBITDA: ₹367 crore (down 11% YoY).

• Q2 FY25 PAT: ₹146 crore (down 12% YoY, up 19% QoQ); H1 FY25 PAT: ₹269 crore (down 10% YoY).

• Margins declined by 4 percentage points year-over-year and 1.5 points sequentially due to price cuts and inventory liquidation.

• Inventory levels normalized to 52 days, similar to last year and March-end.

Outlook and guidance

• Revenue guidance for FY25 is towards ₹6,000 crore if market conditions remain steady; six-month revenue stands at ₹2,600 crore.

• Margins expected to recover to 10% in coming quarters, with a return to historical 11-12% possible if copper volatility subsides.

• E-beam and preform facility construction progressing, with commissioning expected later in the fiscal year.

• FMEG business on track for ₹300 crore revenue in FY25, a 40% increase year-over-year.

• Communication cable margins expected to improve from current 2-2.5% to historical 7-8% as utilization and government procurement pick up.