Finolex Cables (FINCABLES) Q4 99/00 earnings summary

Executive summary

• Record FY00 turnover of Rs 5,760.46 mn and net profit of Rs 706.51 mn; growth came across telecommunications, light-duty and speciality cables.

• Operations benefited from higher capacity utilisation and cost controls, while lower average realisations limited the pass-through of rising input costs.

Financial highlights

• Turnover, including excise, was Rs 5,760.46 mn versus Rs 4,655.56 mn in FY99; income from operations was Rs 5,533.63 mn.

• PBT was Rs 946.51 mn versus Rs 860.18 mn, after a Rs 44.04 mn operating loss in the Sheets Division; PAT was Rs 706.51 mn versus Rs 620.18 mn.

• Profit before interest, depreciation and tax was Rs 1,247.80 mn versus Rs 1,104.14 mn; finance charges fell to Rs 181.09 mn from Rs 237.06 mn.

• EPS was Rs 20.58 post-bonus and post-buyback versus Rs 34.35 on a pre-bonus, pre-buyback basis; dividend was Rs 7.50 per share, treated as final.

• Exports increased to Rs 108.08 mn from Rs 62.51 mn; export order book was described as comfortable, though international pricing remained competitive.

Outlook and guidance

• Turnover in the current fiscal was expected to exceed Rs 11,000 mn following the copper-rod venture acquisition; demand and markets were described as strong and robust.

• Further investment of ~Rs 750 mn at Goa was planned over 18 months; capacity expansion contributions were expected in 2001.

• Export growth was expected from aggressive marketing, consistent quality and timely delivery; higher private-network sales and exports were expected to improve JFTC capacity utilisation.

• Current-year growth focus included LAN, CATV trunk, telephone, light-duty, automotive and electrical-wire products, while reducing dependence on government orders.