Finolex Cables touches new high on robust Q4 results

The stock has rallied over 15% in the past two days after reporting 79% yoy jump in net profit at Rs 69 crore for the March quarter.

Finolex Cables has surged 7% to Rs 149, extending its previous day’s 10% rally, after reporting a 79% year-on-year (yoy) jump in net profit at Rs 69.30 crore for the quarter ended March 31, 2014 (Q4), on strong operational performance. The company had reported profit of Rs 38.75 crore in the same period last year.

The company however reported flat 2.7% yoy growth in net sales at Rs 649 crore as against Rs 632 crore in the corresponding quarter of the previous year.

Communication cables reported strong growth of 33.2% yoy to Rs 67 crore, while Electrical cables reported flat growth of 3.1% yoy to Rs 563 crore. Copper rods segment, however, dipped by 47.7% in the quarter compared to the same quarter of the previous year.

The company’s EBITDA margins expanded by 103 basis points on a yoy basis to 11.6%, mainly due to lower raw material and employee costs.

Meanwhile, the board has recommended a dividend of 80% or Rs.1.60 per equity share of Rs 2 each fully paid up for the financial year ended March 31, 2014.

The stock opened at Rs 145 and hit a new high of Rs 152 on the NSE. The counter has seen huge trading activity with a combined 2.69 million shares changing hands till 1035 hours on the NSE and BSE.