Finolex Cables PAT drops by 17.77 per cent in Q2FY16

Finolex Cables (FCL) declared Q2FY16 results. The company's revenue declined by 4.93 per cent to Rs 605.41 crore in Q2FY16 as compared to same period in previous fiscal year. Its revenue decreased due to fall in commodity prices over second quarter. FCL's total expenditure decreased by 4.8 per cent to Rs 530 crore in Q2FY16 on yearly basis. The company's total expenditure decreased mainly due to a 22.98 per cent reduction in raw material expense during the quarter.

FCL's EBITDA reduced by 5.86 per cent to Rs 75.45 crore in Q2FY16 as compared to the same period in previous financial year. The company's EBITDA margin contracted by 13 basis points to Rs 12.46 per cent in Q2FY16 on yearly basis. Its PBT also declined by 12.20 per cent to Rs 87.6 crore in Q2FY16 on yearly basis as other income reduced by 24.41 per cent to Rs 28 crore during the quarter. FCL's PAT decreased by 17.77 per cent to Rs 64.91 crore in Q2FY16 as compared to same period in previous financial year. The company's PAT margin contracted by 168 basis points to 10.72 per cent in Q2FY16 on yearly basis.

On segmental revenue front, FCL earned 68.65 per cent from electrical cables segment, 15.43 per cent from communication cable segment,13.89 per cent from copper rods segment and remaining 2.04 per cent from others segment in September 2015 quarter.

On half yearly basis, FCL's net sales decreased by 1.25 per cent to Rs 1194 crore in H1FY16. The company's PAT declined by 0.61 per cent and stood at Rs 113 crore in H1FY16 on yearly basis. It is awaiting BIS certification of its low voltage MCB products, the launch consequently has been further delayed.

FCL's shareholding pattern indicates that FII holdings contracted by 68 basis points to 7.54 per cent and DII holdings expanded by 70 basis points to 14.94 per cent in September 2015 quarter. The share price of the company decreased by 2.97 per cent on bourses in early trades and is trading at Rs 244.3 on intraday basis.

FCL is manufacturer of electrical and telecommunication cables. The Company operates in two segments namely Electrical Cables and Communication Cables. The electrical cables segment includes the manufacture of 1100 V PVC insulated cables, motor winding PVC insulated cables and three core flat cables, automotive/battery cables, universal power supply (UPS) cables, heavy duty, underground, low voltage, power and control cables, and heavy duty, underground, high voltage and power Cables. Its Communication cables segment includes jelly filled telephone cables, local area network (LAN) cables, PE insulated telephone cables (switchboard cables), coaxial cables, optic fiber V-SAT cables and optic fiber cables.