Finolex Cables (FINCABLES) Q4 98/99 earnings summary

Executive summary

• FY99 turnover including excise was ₹4,655.56m, up 1% YoY; PBT rose to ₹860.18m from ₹699.17m and PAT to ₹620.18m from ₹486.17m.

• Cable sales volumes increased despite subdued value growth, with improved capacity utilization, cost control and operating efficiency supporting stronger profitability.

Financial highlights

• Turnover was ₹4,655.56m vs ₹4,608.55m; product sales value grew 8.8%, while lower copper prices and excise duty reduced sales realization.

• PBT was ₹860.18m vs ₹699.17m; PAT was ₹620.18m vs ₹486.17m, up nearly 28% YoY as reported.

• EBITDA proxy, profit before interest, depreciation and tax, was ₹1,104.14m vs ₹1,067.63m; finance charges fell to ₹237.06m from ₹358.25m.

• EPS increased to ₹34.3 from ₹26.9; proposed dividend was ₹7/share vs ₹6/share, absorbing ₹126.37m.

Outlook and guidance

• Demand outlook was positive for telecom, data and electrical cables; LAN demand was expected to benefit from PC growth and network upgrades.

• A 25 LCKM/year Jelly Filled Telephone Cable plant at Verna, Goa, with estimated project cost of ₹750m, was expected to start before the new millennium, barring unforeseen circumstances.

• Co-axial capacity was being substantially expanded to meet cable-TV network growth and replacement demand; LAN customers were to be offered connectors and passive components alongside cable.

• Foam-skin telephone cable export orders could open adjacent markets; export order backlog carried into FY00 was ₹60m.