Finolex Cables shares soar 19% after strong Q4FY24 financial results

Finolex Cables Ltd shares scaled a new high of ₹1,363.3 per piece on the NSE on Friday, rising more than 19% in the session, following the company’s healthy financial results for the quarter ended on March 31, 2024.

The leading cables manufacturer reported a consolidated net profit of ₹186.1 crore for the quarter ending on March 31, 2024, marking an uptick of 6.34% on a year-on-year (YoY) basis from ₹175 crore in the same period last year. The company’s net profit grew 23.26% sequentially compared to ₹150.98 crore in the preceding quarter.

The company’s revenue from operations witnessed a healthy double-digit growth of 14.5% YoY to ₹1,401.02 crore in March quarter compared to ₹1,224.32 crore in the year-ago period.

On the operating front, Finolex Cables’ earnings before interest, taxes, depreciation, and amortization (EBITDA) rose over 11% on a YoY basis to ₹162 crore in Q4 FY24 from ₹145.7 crore last year.

Further, the EBITDA margin contracted slightly to 11.6% in the quarter under review as opposed to 11.9% in the corresponding quarter of the previous fiscal year.

For the full financial year 2024, Finolex Cables reported a 14% higher profit after tax at ₹571.6 crore against ₹501.7 crore in the preceding financial year.

The company’s sales for the full fiscal (FY24) improved 12% to ₹5,014.4 crore from ₹4,481.1 crore in the previous fiscal year. In FY24 the company saw the prices of commodities remaining volatile, leading to several price revisions being passed on cost reductions as well as cost increases to the end customers, Finolex Cables informed the bourses.

Finolex Cables dividend

The electrical and telecommunication cables maker’s Board of Directors recommended a dividend of 400%, at ₹8 per equity share of the face value of ₹2 each for the financial year 2024. The dividend payout is subject to approval of its shareholders at the company’s ensuing Annual General Meeting (AGM).

Shares of Finolex Cables closed 12.21% higher at ₹1,283 apiece on the NSE.