Finolex Cables Ltd. (FCL) has reported revenues for Q2 at ₹1090.8 crore as against ₹932.9 crore for the corresponding period in FY22, representing a 17 per cent growth in value terms.
In volume terms, electrical cables increased by 10 per cent, while within the communication cables segment, the volume of metal-based products improved by 24 per cent during the quarter. Optic fibre cable volumes grew by over 100 per cent during the quarter.
Volume growth in new products within the FMEG sector was generally affected by inflationary pressures, as well as subdued consumer sentiment, as well as destocking in the case of FANS due to the expected changes in BEE norms. Net margins were impacted in cables due to changes in product mix, as well as liquidation of high-cost inventory (fall in copper prices during the quarter).
Revenues for the six months period ended September 2022 were ₹2106.5 crore as against ₹1608.3 crore for the corresponding period of FY22, representing a 31 per cent growth in value terms.
In volume terms, electrical cables increased by 14 per cent, while within the communication cables segment, the volume of metal-based products improved by 19 per cent and optic fibre cable volumes grew by over 100 per cent during H1 FY23.
Profit for the quarter, after taxes, was ₹136.7 crore as compared to ₹149.7 crore in the previous year, lower by 8 per cent. Besides the lower margins, profits were also impacted by higher marketing spends.
Profit, after taxes, for the six months ended September 2022 was ₹232.3 crore as against ₹204.8 crore in the corresponding period of 2021-22, higher by 13 per cent.