Finolex Cables Ltd. — Interim / Quarterly Report 2021

Nov 19, 2020

FCL: SEC: SE: 2020:211 19th November 2020

Corporate Relationship Department BSE Limited 1st Floor, New Trading Ring Rotunda Building, P J Towers Dalal Street, Fort Mumbai - 400 001

Ref: Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Regulations")

Dear Sirs,

In continuation of our earlier letter Ref. No. FCL:SEC:SE:20:210 dated 12th November, 2020 we enclose a copy of the presentation to be made by the Company. Mr. Deepak Chhabria — Executive Chairman and Mr. Mahesh Viswanathan - Chief Financial Officer will represent the Company during the said Conference call to be held on Thursday, 19th November 2020.

This is for your kind information and updating on the website of the Exchange.

Yours faithfully For FINOLEX CABLES LIMITED

U•;)

Gay= tri Kulkarni Co u pliance Officer End: As stated above

Earnings Presentation Q2 FY2021

Key Highlights

Key Highlights

• Revenue declined by 10.70% YoY and increased 69.55% QoQ operating environment gradually improving with staggered unlocking leading to better performance in current quarter.
• EDITDA margins declined by 486 bps YoY due to lower volume and increased 85 bps QoQ due to better performance in current quarter as compared to previous quarter.
• PBT at 92.15 Crore lower than previous year by 33.74%, while higher than previous quarter by 96.78%.
• PAT margin declined by 640 bps YOY and increased 153bps QoQ.

Electrical Cables

• Electrical segment improved with gradual resumption of economic activities.
• Revenue improved by 62.41% QoQ but declined by 8.42% YoY. Post unlocking of economy, volumes nearing pre-COVID levels.
• Widespread investments in infrastructure, strong emphasis on universal electrification, urbanization, and housing sector growth, and renewable energy from government of India will push the growth in electric cables in coming days.

Communication Cables

• Both COVID related disruptions as well as structural issues in the industry continue to adversely impact this segment. However, revenue improved by 160.15% QoQ and declined by 32.86% YoY.
• With higher revenues in the quarter, EBIT levels also returned to positive territory.

Others

▪ Other segment comprise of Fans, Water Heaters, Lamps, Switches and Switchgear offerings. Improved distribution efforts is starting to pay off as volumes have begun to pick up. Revenue increased by 48.64 % YoY and QoQ.

Financial Statements

Finolex Cables Limited | Q-2 FY Earning Presentation 88

Standalone Profit and Loss Statement

		Quarterly								Half Yearly
	Particulars	Q2FY21	%	Q1FY21	%	Q2FY 20	%	1H FY21	%	1H FY20
	Revenue from operations	639.41	97%	377.12	94%	715.76	92%	1016.53	96%	1523.50
	Other income	19.76	3%	22.48	6%	64.71	8%	42.24	4%	86.68
	Total income	659.17	100%	399.60	100%	780.47	100%	1058.77	100%	1610.18	100%
	Expenses
(a)	Cost of material consumed	464.66	70%	283.45	71%	522.68	67%	748.11	71%	1107.75
(b)	Employee benefits expense	33.91	5%	33.96	8%	39.00	5%	67.87	6%	76.69
(c)	Finance Costs	0.18	0%	0.17	0%	0.23	0%	0.35	0%	0.45
(d)	Depreciation and amortizationexpenses	9.79	1%	10.02	3%	9.80	1%	19.81	2%	19.70
(e)	Other Expenses	58.48	9%	25.17	6%	69.68	9%	83.65	8%	148.66
	Total Expenses	567.02	86%	352.77	88%	641.39	82%	919.79	87%	1353.25
	Profit before Tax	92.15	14%	46.83	12%	139.08	18%	138.98	13%	256.93
	Tax Expense
(a)	Current tax	25.82	4%	13.00	3%	28.04	4%	38.82	4%	63.96
(b)	Deferred tax	(2.75)	0%	-1.15	0%	-12.08	-2%	-3.90	0%	-11.72
	Total Tax	23.07	3%	11.85	3%	15.96	2%	34.92	3%	52.24
	Profit for the period	69.08	10%	34.98	9%	123.12	16%	104.06	10%	204.69

19.81	2%	19.70	1%
919.79	87%	1353.25	84%
104.06	10%	204.69	13%

Profit Bridge YTD Sept'20 Vs Sept'19

Standalone Balance sheet

	Particulars	As at30-Sept-2020	As at31-Mar-2020	As at30-Sept-2019
	ASSETS
	Non Current Assets
	Fixed Assets & Others	826.70	916.54	976.26
	Other Non-Current Assets	25.00	26.08	23.06
	Total Non Current Assets	851.70	942.62	999.32
	Current Assets
(a)	Inventories	562.94	593.06	527.64
(b)	Trade Receivables	116.36	187.02	216.00
(c)	Investments	383.54	246.55	931.89
(d)	Cash and Cash Equivalents	295.29	933.88	50.08
(e)	Other Current Assets	881.56	108.66	106.03
	Total Current Assets	2,239.69	2,069.17	1,831.64
	TOTAL ASSETS	3,091.39	3,011.79	2,830.96

(Rs. In Crore)

(Rs. In Crore)

	Particulars	As at30-Sept-2020	As at31-Mar-2020	As at30-Sept-2019
	LIABILITIES
	Shareholders Fund
(a)	Equity Share Capital	30.59	30.59	30.59
(b)	Other Equity	2,718.48	2,688.04	2,514.66
	Total Shareholders Fund	2,749.07	2,718.63	2,545.25
	Non Current Liabilities
(a)	Lease Liabilities NC	4.14	5.23	5.85
(b)	Other Non Current Liabilities	44.59	48.67	55.27
(c)	Borrowings NC	0.31	0.34	0.37
	Total Non Current Liabilities	49.04	54.24	61.49
	Current Liabilities
(a)	Trade Payables	130.78	158.68	161.22
(b)	Provisions	7.84	6.61	6.64
(c)	Other Current Liabilities	154.66	73.63	56.36
	Total Current Liabilities	293.28	238.92	224.22
	TOTAL LIABILITIES	3,091.39	3,011.79	2,830.96

Cash Flow statement			(Rs. In Crore)
Particulars	Q2 FY21	Q1FY21	Q2 FY20			Shareholding Pattern
Net cash generated from operating activities	148	251	188	0.4
Net cash generated/(used in) investing activities**	-990	-1,095	-105		35.92%			38.17%
Net cash (used in) financing activities	-2	-1	-83	0.35
Net Increase /(Decrease) in cash and cash equivalents	-844	-846	-	0.3
				0.250.2		18.75%
Other data points			(Rs. In Crore)	0.15
Particulars	Q2 FY21	Q1FY21	Q2 FY20				7.06%
Advertisement and sales promotion expense	4.76	1.04	4.65	0.1
Capital expenditure	13.16	6.89	8.39	0.05					0.10%
Net Cash Position*	295.29	688.38	50.08
Trade acceptances*	116.36	99.41	216.00	0	Promoters	Mutual Fund &	Foreign	Non	Others
					Shareholding	UTI	InstitutionalInvestors	InstitutionalInvestors

Notes:*as at period

** Investment redeemed and put into Fixed Deposit.

Other Financial Metrics

Working Capital in days

	Q2 FY21	Q1 FY 21	Q2 FY20
Receivable Days	17	24	27
Payable Days	26	39	28
Inventory Days	80	106	67
Net working Capital Days	55	77	66

Other Income(Rs. In Crore)
Particulars	Q2 FY21	Q1 FY 21	Q2 FY20
(a) Interest Income	14.20	13.74	2.54
(b) Dividend Income	-	-	40.21
(c ) Net gain/(loss) on investments classified at FVTPL	4.11	8.57	21.73
(d ) Exchange gain/(losses) on translation of Assets and Liabilities	(0.01)	(0.25)	(0.19)
(e ) Others	1.46	0.42	0.42
Total	19.76	22.48	64.71

Finance Cost(Rs. In Crore)
Particulars	Q2 FY21	Q1 FY 21	Q2 FY20
Interest others	0.17	0.17	0.23
Total	0.17	0.73	0.22

Key Highlights Revenue of all product

Safe Harbour

This report contains forward-looking statements, which may be identified by their use of words like 'plans', 'expects', 'will', 'anticipates', 'believes', 'intends', 'projects', 'estimates' or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Company's strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company's actual results, performance or achievements could thus differ materially from those projected in any such forwardlooking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events. The Company has sourced the industry information from the publicly available resources and has not verified those information independently.

Thank you

Finolex Cables Limited

Regd. Office: 26-27, Mumbai-Pune Road, Pimpri, Pune - 411 018.

Tel.: +91-20-27475963

CIN: L31300MH1967PLC016531