Finolex Cables Ltd. — Interim / Quarterly Report 2021

Jul 5, 2021

FCL: SEC: SE: 2021:81 5th July 2021

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:21:78 dated 1st July, 2021 we enclose a copy of the presentation to be made by the Company who will be represented by Mr D K Chhabria, Executive Chairman and Mr Mahesh Viswanathan CFO of the Company during the said Conference call to be held at 3.00 p.m. IST on Monday, 5th July 2021.

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

Thanking you,

Yours faithfully For FINOLEX CABLES LIMITED

Gay tri Kulkarni Compliance Officer End: As stated above

Regd. Office : 26-27, Mumbai-Pune Road, Pimpri, Pune - 411 018. India. Tel.: 91-20-27475963. Fax : 020-27470344, 27472239, Website : www.finolex.com Email : sales@finolex.com CIN No.: L31300MH1967PLC016531 11111111

Finolex gets people together

Earnings Presentation Q4 FY2021

Key Highlights

Key Highlights-Q4FY21

• Revenue increased by 41% YoY and 11% QoQ in Q-4 with healthy growth across all segments.
• EBITDA margins-YOY increased from Rs- 145.80 Crore to Rs-147.34 Crore and QoQ increased from Rs-125.36 Crore to Rs-147.34 Crore due to better performance in current quarter and cost saving initiatives
• PAT for Q-4 of 2020-21 stood at Rs- 96.08 Crore as against Rs-117.16 Crore for the corresponding period of previous year- lower dividend (tax free) income during the quarter as compared to previous year, contributed to the lower PAT.

Key Highlights-FY21

• Revenue declined by 3.8% YoY due to business impacted by COVID-19 and Lockdown in first half of FY21.
• EBITDA margins declined by 20.3% YoY due to lower dividend income(tax free) and volumes for the year are lower than what was achieved in previous year-Electrical Wires by 10% and all Communication product line by 1%.Newer product lines(Fans, Switchgear and Water Heaters)have all increased between 24% to 524% in volumes as compared to previous year.

Electrical Cables

• Electrical cables segment improved with gradual resumption of economic activities.
• Revenue improved by 8% QoQ but yet to catch up previous YoY level. Post unlocking of economy, volumes nearing pre-COVID levels.
• Electrical Cables business is mostly driven by the real estate sector, slow growth in that sector impacted the Company's wires and cables business. Despite this, the Company managed to register decent earnings in the year under review, performing well in the general electric wire sub segment, which caters to construction space and automobile wire.

FY21

Finolex Cables Limited | Q4 & FY21 Earning Presentation 6

(Rs.In Crore)

14.7%

Communication Cables

• Both COVID related disruptions as well as structural issues in the industry continue to adversely impact this segment. However, revenue improved by 33% QoQ and yet to catch up previous YoY level.
• The telecom sector was negatively impacted by two factors first, the fall in international fiber prices led to lower selling price across all segments of communication products, impacting the total profit margins. Second, most of the communication cable projects moved slowly in the domestic market due to liquidity crunch.

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 73% YoY and 16%QoQ.

Finolex Cables Limited | Q-4& FY21 Earning Presentation 8

Financial Statements

Finolex Cables Limited | Q-4& FY21 Earning Presentation 99

Standalone Statement of Profit and Loss Statement

Particulars		Quarterly				Yearly
		Q4FY21	%	Q3FY21	%	Q4FY20	%	FY21	%	FY20	%
Revenue from operations		921.35	98%	830.23	98%	651.44	92%	2,768.11	97%	2,877.30	94%
Other income		16.03	2%	18.72	2%	58.69	8%	76.99	3%	171.89	6%
Total income		937.38	100%	848.95	100%	710.13	100%	2,845.10	100%	3,049.19	100%
EXPENSES
(a)	Cost of material consumed	682.6	73%	620.73	73%	461.27	65%	2,051.44	72%	2,083.35	68%
(b)	Employee benefits expense	31.75	3%	38.25	5%	35.96	5%	137.87	5%	149.53	5%
(c)	Finance Costs	0.24	0%	0.17	0%	0.73	0%	0.76	0%	1.55	0%
(d)	Depreciation and amortization expenses	10.67	1%	8.48	1%	9.57	1%	38.96	1%	38.91	1%
(e)	Other Expenses	75.69	8%	64.61	8%	67.10	9%	223.95	8%	274.52	9%
Total Expenses		800.95	85%	732.24	86%	574.63	81%	2,452.98	86%	2,547.86	84%
Profit before Tax		136.43	15%	116.71	14%	135.50	19%	392.12	14%	501.33	16%
TAX	EXPENSES										0%
(a)	Current tax	39.32	4%	34.49	4%	34.35	5%	112.63	4%	123.24	4%
(b)	Deferred tax	1.03	0%	(0.53)	0%	(16.01)	(2)%	(3.40)	0%	(24.39)	-1%
	Total Tax		4%	33.96	4%	18.34	3%	109.23	4%	98.85	3%
Profit for the period		96.08	10%	82.75	10%	117.16	16%	282.89	10%	402.48	13%

Profit Bridge YTD Mar'21 VS Mar'20

Standalone Balance sheet

(Rs.In Crore)

(Rs.In Crore)

Particulars	As at31-Mar-2021	As at31-Dec-2020	As at31-Mar-2020
ASSETS
Non Current Assets
Fixed assets	873.18	858.42	916.54
Other Non-Current Assets	35.20	29.57	26.08
Total Non Current Assets	908.38	887.99	942.62
CurrentAssets
(a) Inventories	755.40	629.72	593.06
(b) Trade Receivables	176.55	124.06	187.02
(c) Investments & Cash andCash Equivalents	1,340.93	1,476.53	1,236.33
(e) Other Current Assets	70.50	59.69	52.76
Total Current Assets	2,343.38	2,290.00	2,069.17
Total Assets	3,251.76	3,177.99	3,011.79

Particulars	As at31-Mar-2021	As at31-Dec-2020	As at31-Mar-2020
Equity& Liabilities
Equity
(a) Equity Share Capital	30.59	30.59	30.59
(b) Other Equity	2,920.12	2,816.85	2,688.04
	2,950.71	2,847.44	2,718.63
Non Current Liabilities
(a) Lease Liabilities	4.18	4.50	5.23
(b) Other Non current Liabilities	45.82	45.49	48.67
(C ) Borrowings	0.31	0.31	0.34
Total Non Current Liabilities	50.31	50.30	54.24
Current Liabilities
(a)Trade payables	176.03	185.68	158.68
(b ) Provisions	6.85	9.14	6.61
( c) Other Current Liabilities	67.86	85.43	73.63
Total Current Liabilities	250.74	280.25	238.92
TotalEquity & Liabilities	3,251.76	3,177.99	3,011.79

Shareholding Pattern

(Rs.In Crore)

Cash Flow statement

Particulars	FY21	FY20
Net cash generated from operating activities	114	309
Net cash generated/(used in) investing activities**	(859)	587
Net cash (used in) financing activities	(86)	(86)
Net Increase /(Decrease) in cash and cash equivalents	(831)	810

Notes:** Fixed Deposit matured and amount invested in Investment.

Other Financial Metrics

Working Capital in days

Particulars	Q4FY21	Q3 FY21	Q4FY20
Receivable Days	17	14	26
Payable Days	23	27	31
Inventory Days	75	69	83
Net working Capital Days	67	52	76

	(Rs. In Crore)

Particulars	Q4FY21	Q3 FY21	Q4FY20
(a) Interest Income	10.56	13.11	3.29
(b) Dividend Income	0.05	0.19	40.26
(c ) Net gain/(loss) on investments classified at FVTPL	4.13	4.57	13.81
(d ) Exchange gain/(losses) on translation of Assets and Liabilities	0.47	0.45	0.17
(e ) Others	0.80	0.40	1.16
Total	16.01	18.72	58.63

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