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Finolex Cables announces 1QFY20 results

Finolex Cables Ltd. has recently announced the results for the first quarter of the financial year 2019-20. Net sales for the quarter ended June 30, 2019, were `807.7 crore as against `791.2 crore for the corresponding period of the previous year, representing a 2.1 percent improvement in value terms.

Growth in net sales was affected by subdued construction activity and slowdown in automobile and communication sectors. Further, commodity prices have fallen by over 12 percent during the comparable periods, which have affected revenue. On volumes, electrical wires grew by a modest 3 percent, while in the communication sector, OFC volumes declined due to delays in order conclusions as well as slowdown in government spending. It is expected that with the new government in place, programs to improve connectivity with broadband and related technologies will gain momentum. New businesses contributed `15 crore as against `7 crore in the previous year. Volume showed improvement; however, higher spends on advertisement and market development activities resulted in lower profitability. As volumes improve further, it is expected that profitability should improve as well. Profit for the quarter, before taxes, was `117.8 crore as compared to `139.8 crore in the previous year.

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