Finolex Cables (FINCABLES) Q4 00/01 earnings summary

Executive summary

• FY2000-01 turnover incl. excise was Rs 6,278.67m, up 9%; PAT rose 2.63% to Rs 725.09m despite a 41-day Urse strike affecting telephone-cable shipments.

• Export revenue reached Rs 183.54m, up 70%; a Rs 900m Foam Skin telephone-cable order was secured for execution by March 2002.

• Production rose 2.43% to 5,564 TCKM; capacity, exports, brand investment and distribution expansion underpin growth plans.

Financial highlights

• Turnover incl. excise: Rs 6,278.67m vs Rs 5,760.46m; income from operations: Rs 6,046.42m vs Rs 5,533.63m.

• Profit before interest, depreciation and tax was Rs 1,297.97m, up 4%; PBT was Rs 926.09m vs Rs 946.50m.

• PAT rose to Rs 725.09m from Rs 706.50m; tax provision was Rs 201m, net of Rs 12m excess provision for prior years.

• Recommended dividend was Rs 7.50/share, unchanged YoY; total outgo incl. dividend tax was Rs 283.80m.

Outlook and guidance

• Rs 900m Foam Skin telephone-cable export order is scheduled for execution by March 2002.

• Verna, Goa CATV trunk-cable facility has ~Rs 200m outlay; production was targeted to start in Q2 FY2001-02.

• BSNL’s 2001-02 telephone-cable tender was 44,100 TCKM, a 10% increase; capacity and market reach were being expanded to pursue demand.

• Construction was identified as a key electrical-wire growth market; flexible-wire growth was expected to remain marginal amid weak capital-goods demand.