Finolex Cables Ltd. — Interim / Quarterly Report 2024

Aug 16, 2023

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FCL:SEC:SE:PRSN:23:86		16th August 2023
Corporate Relations Department BSE Limited 1st Floor, New Trading Ring Rotunda Building, P J Towers Dalal Street, Fort Mumbai – 400 001	The Manager Listing Department National Stock Exchange of India Ltd `Exchange Plaza’, C-1, Block G, Bandra – Kurla Complex, Bandra (E), Mumbai – 400 051	Mr Tom Schmit Luxembourg Stock Exchange PO Box 165 L-2011 Luxembourg Grand-Duchy of Luxembourg EUROPE
ScripCode: 500144	ScripCode: FINCABLES

Dear Sir/Madam,

Sub: Investor Presentation - Conference call with Analysts & Investors scheduled on 17[th] August 2023

Ref: Regulation 30 (4) read with Clause 15(a) of PART A PARA A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In continuation to our prior intimation dated 12[th] August 2023 and in terms of the above referred regulation, please find enclosed a copy of the investor presentation for the quarter ended on June 30, 2023.

Please note that the said presentation will be uploaded on the website of the Company at www.finolex.com

You are requested to take the same on your records.

Thanking you, Yours truly,

For FINOLEX CABLES LIMITED

GAYATRI Digitally signed by GAYATRI KULKARNI KULKARNI Date: 2023.08.16 14:56:40 +05'30'

Gayatri Kulkarni Assistant Company Secretary & Compliance Officer

Encl: As Above.

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Registered Office:

26-27, Mumbai-Pune Road, Pimpri, Pune – 411018. Tel: 020 27506200. Visit us at: www.finolex.com | Email: sales@finolex.com | CIN: L31300MH1967PL016531

Q1 FY2024 PRESENTATION

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Q1 FY
Q1 FY2022
2024
Earnings
Presentation
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INDEX
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Forging ahead
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Finolex House
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Our Social Media
Post
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Our Contribution
to Society
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Finolex in Numbers

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Our Key Figure-
Q1 FY 24
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Key figure-
Electrical Cable
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Key figure-
Communication
Cable
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Key Figure-
Other Products
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Our Key Figure

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Financial Matrics
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Standalone
Statement of
Asset & Liability
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Key Figure- All
Product
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Profit Bridge
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Financial Statement Shareholding Pattern

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Product
Portfolio
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Revenue Break-Up

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4.36%
0.52%
12.92%
FY 2022-23
82.20%
• Electrical Cables • Communication Cables:
• Copper Rods: • Other Products
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Finolex Cables Limited | Q1FY24 Earning Presentation

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The company’s expansion plans i.e. Preform facility, OFC Capacity expansion and E-Beam facility are on track. The E-Beam facility is expected to be operational in Q4 of this year while the others are expected to go live early next financial.

Finolex Cables Limited | Q1FY24 Earning Presentation

5

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Finolex Cables Limited

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Finolex Cables Limited | Q1FY24 Earning Presentation

Key Highlights

Top Line (Revenue) Operating (EBITDA) Profitability (PAT) Q1 FY 24 : 1,204 Crore Q1 FY 24 :183 Crore Q1 FY 24 : 132 Crore 19% Y-o-Y 40% Y-o-Y 39% Y-o-Y (2)% Q-o-Q (3)% Q-o-Q (2)% Q-o-Q

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Finolex Cables Limited | Q1FY24 Earning Presentation

Key Highlights-Q1FY24

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REVENUE	REVENUE		(Rs. In Crore)	(Rs. In Crore)	EBITDA	EBITDA				(Rs. In Crore) (% Margin)	(Rs. In Crore) (% Margin)	PAT	PAT			(Rs. In Crore) (% Margin)	(Rs. In Crore) (% Margin)
1200 1400	1204	1224	Revenue		180 200		183		190	EBITDA		140 160		132	135	PAT
1000			1016		140 160					131		120
800					120							100				96
					100							80
600					80							60
400	Q-o-Q Y-o-Y				40 60			Q-o-Q Y-o-Y				40		Q-o-Q Y-o-Y
0 200	Q1FY23 Q4FY23 Q1FY22 (2)% 19%				0 20		Q1FY23 Q4FY23 Q1FY22 (3)% 40%					0 20		Q1FY23 Q4FY23 Q1FY22 (2)% 39%

▪ During the quarter, product sales amounted to Rs.1204 Crore against Rs.1016 Crore in the corresponding period of 2022-23. I.e. an increase of 19%. ▪ Volume growth in the quarter was broad based – 29% in wires, 17% in metal based communication cables and over 50% in OFC. ▪ EBITDA margins increased by 40% YoY . ▪ PAT for Q1 FY2024 Rs. 132 Crore as compared to previous year Q1 FY2023 Rs. 96 Crore, an improvement of 39%.

Finolex Cables Limited | Q1FY24 Earning Presentation

Q1 FY24

Electrical Cables

▪ Revenue up by 22% compared to Q1 of 22-23.

▪ In volume terms, Electrical cables increased by 29% while Power cables increased by 3%.

▪ All product lines showed volume increase.

▪ EBIT levels at 13%, return to normalcy.

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REVENUE (Rs. In Crore) EBIT (Rs. In Crore)
(% Margin)
1200 140 133 132
1011 1032
120
1000 106
Q-o-Q Y-o-Y 827 100 Q-o-Q Y-o-Y
800 (2)% 22% 0.72% 25%
80
600
60
400
40
200 20
0 0
Q1FY23 Q4FY23 Q1FY22 Q1FY23 Q4FY23 Q1FY22
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Finolex Cables Limited | Q1FY24 Earning Presentation

Q1 FY24

Communication Cables

• All metal based product lines showed healthy volume increase – overall 17%.

• Falling fiber prices led to value stagnation on OFC.

• Company participated in a representation to GoI on fiber being “dumped” into the country from overseas at throwaway prices – recently GoI invoked anti-dumping measures, which hopefully will restore realisations to normal.

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REVENUE (Rs. In Crore) EBIT (Rs. In Crore)
142 3.50 3.15 3.30 (% Margin)
140 3.00 2.73
140
2.50 Q-o-Q Y-o-Y
138 Q-o-Q Y-o-Y (13)% (17)%
137
(2)% 2% 2.00
136
1.50
134
134
1.00
132
0.50
130
0.00
Q1FY23 Q4FY23 Q1FY22
Q1FY23 Q4FY23 Q1FY22
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• Announcement that the cabinet has cleared a proposal for an investment of Rs 1.4 lakh cr in enabling last mile connectivity under the BharatNet program augurs well for all market participants including FCL.

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Finolex Cables Limited | Q1FY24 Earning Presentation

Q1 FY24

Others

• Volumes in Fan category affected by unseasonal rains in summer.

• While headline inflation was lower than in the previous quarter, consumer sentiment was still depressed with lower discretionary spends.

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REVENUE (Rs. In Crore) EBIT (Rs. In Crore)
51 50 (% Margin)
0.80 0.72 0.74
50
0.70
49
0.60
48 Y-o-Y
47 46 Q-o-Q (7.5)% 0.50 0.43
2.6%
46 45 0.40
45 0.30
44
0.20
43
0.10
42
0.00
Q1FY23 Q4FY23 Q1FY22
Q1FY23 Q4FY23 Q1FY22
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Finolex Cables Limited | Q1FY24 Earning Presentation

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Finolex Cables Limited | Q1FY24 Earning Presentation

Standalone Statement of Profit and Loss Statement

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(Rs. In Crore)

Particulars	Particulars	Quarterly	Quarterly	Quarterly	Quarterly	Quarterly	Quarterly	Year to Date	Year to Date
		Q1FY23	%	Q4FY23	%	Q1FY22	%	YTD 23	%
	Revenue from Operations	1,204.25	97%	1,224.32	97%	1,015.65	98%	4,481.11	96%
	Other Income	38.81	3%	41.82	3%	17.16	2%	198.13	4%
Total Income (I+II)		1,243.06	100%	1,266.14	100%	1,032.81	100%	4,679.24	100%
Expenses
	Cost of material consumed	883.29	71%	939.24	74%	871.76	84%	3,459.32	74%
	Purchase of stock-in-trade	17.55	1%	17.88	1%	24.42	2%	78.59	2%
	Changes in inventories of finished goods, stock-in-trade and work in progress	49.16	4%	6.29	0%	(93.88)	-9%	6.57	0%
	Employee benefits expense	42.66	3%	39.29	3%	40.77	4%	162.67	3%
	Finance costs	0.29	0%	0.85	0%	0.13	0%	1.24	0%
	Depreciation and amortization expense	10.50	1%	15.14	1%	9.37	1%	46.40	1%
	Other expenses	67.19	5%	73.91	6%	58.91	6%	278.41	6%
Total Expenses (IV)		1,070.64	86%	1,092.60	86%	911.48	88%	4,033.20	86%
Profit before tax (III-IV)		172.42	14%	173.54	14%	121.33	12%	646.04	14%
Tax expense
	(1) Current tax	39.40	3%	39.09	3%	27.17	3%	145.04	3%
	(2) Deferred tax charge/(credit)	0.78	0%	(0.13)	0%	(1.41)	-0.1%	(0.74)	0%
Total Tax		40.18	3%	38.96	3%	25.76	2%	144.30	3%
Profit for the year (V-VI)		132.24	11%	134.58	11%	95.57	9%	501.74	11%

Finolex Cables Limited | Q1FY24 Earning Presentation

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Profit Bridge YTD June’24 VS June’23

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200.00
180.00 172.42
160.00
140.00
121.33
120.00
100.00
80.00
61.04
60.00
40.00
(7.08) (1.89)
20.00 (1.34) (0.16)
(1.00)
1.52
-
PBT J u ne'22 Margin Increase/ Consumption, Emplo y ee Cost Provision for Advertising & Sales Interest Income and Finan c e Cost PBT J u ne'23
(20.00) (Decrease) Power & Fuel Doubtful Debts Promotion Dividend
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Finolex Cables Limited | Q1FY24 Earning Presentation

Standalone Statement of assets and Liabilities

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(Rs. In Crore)

						Note	As at	As at					Note	As at	As at
						No.	30th June 2023	30th June 2022					No.	30th June 2023	30th June 2022
	I	ASSETS							II	EQUITY AND LIABILITIES
		NON CURRENT ASSETS								EQUITY
		(a)		Property,Plant and Equipment		3	424.83	391.98		(a)	EquityShare Capital		16	30.59	30.59
		(b)		Capital Work-in-Progress		3.1	28.15	60.36		(b)	Other Equity		17	3,823.81	3,322.60
		(c)		Intangible Assets		4	1.37	0.26			Total equity			3,854.40	3,353.19
		(d)		Right of use Asset		5	12.38	11.30		LIABILITIES
		(e)		Financial Assets						NON CURRENT LIABILITIES
				i)Investment in Associate and Joint Ventures		6	196.31	197.53		(a)	Financial Liabilities
				ii)Other Investments		7	183.86	85.37			i)Borrowings NC		18	0.25	0.28
				iii)Other Financial Assets		9	4.88	103.40			ii)Lease Liabilities NC		5	10.5	7.27
		(f)		Non-Current Tax Assets(net)			20.78	19.96		(b)	Provisions		19	11.06	10.15
		(g)		Other Non-Current Assets		10	42.32	20.62		(c)	Deferred Tax Liabilities ( Net)		20	33.76	24.67
				Total Non Current Assets			914.88	890.78			Total Non Current Liabilities			55.57	42.37
		CURRENT ASSETS								CURRENT LIABILITIES
		(a)		Inventories		11	592.12	737.90		(a)	Financial Liabilities
		(b)		Financial Assets							(i)Borrowings		18	0.03	0.03
				i)Investments		8	1747.39	1157.59			(ii)Lease Liabilities C		5	3.47	2.14
				ii)Trade Receivables		12	203.58	195.96			(iii)Trade Payables
				iii) Cash and Cash Equivalents		13	42.7	27.93			(a) Total Outstanding Dues of micro enterprises and small enterprises		21	16.77	13.80
				iv) Other Bank balances		14	7.83	5.56			(b) Total Outstanding Dues of Creditors other than micro enterprises and small enterprises		21	155.26	164.22
				v) Other Financial Assets		9	672.5	598.40			(iv) Other Financial Liabilities		22	4.49	4.30
		(c)		Other Current Assets		15	24.48	50.43		(b)	Other Current Liabilities		23	63.77	45.91
										(c)	Provisions		19	7.81	5.74
										(d)	Current tax Liabilities (net)			43.91	32.85
											Total Current Liabilities			295.51	268.99
				Total Current Assets			3,290.60	2,773.77		TOTAL LIABILITY				351.08	311.36
		TOTAL ASSETS					4,205.48	3,664.55		TOTAL EQUITY AND LIABILITIES				4,205.48	3,664.55
	Finolex Cables Limited	Q-3&9MFYEarning Presentation Finolex Cables Limited	Q1FY24 Earning Presentation

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Shareholding Pattern

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Shareholding Pattern
0.45
0.4 38.21%
35.92%
0.35
0.3
0.25
0.2 18.31%
Percentage
0.15
0.1
7.55%
0.05
1%
0
Promoters Shareholding Mutual Fund & UTI Foreign Institutional Non Institutional Investors Others
Investors
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Finolex Cables Limited | Q4FY23 Earning Presentation

Other Financial Metrics:-

(Rs. In Crore)

Other Income:

Particulars	Q1FY24	Q4FY23	Q1FY23
(a) Interest Income	12.59	13.07	11.07
(b) Dividend Income	0.00	0.05	0.00
(c ) Net gain/(loss) on investments classified at FVTPL	25.79	21.05	4.61
(d ) Exchange gain/(losses) on translation of Assets and Liabilities	0.19	0.32	0.05
(e) Net gain on disposal of property, plant and equipment	0.06	-	-
(e ) Others	0.18	7.35	1.43
Total	38.81	41.84	17.16

Finance Cost

Particulars	Q1FY24	Q4FY23	Q1FY23
Interest others	0.29	0.85	0.13
Total	0.29	0.85	0.13

Cash Flow statement

Working Capital in days

Particulars	Q1FY24	Q4FY23	Q1FY23
ReceivableDays	15	14	17
PayableDays	13	15	16
InventoryDays	56	60	83
Networking Capital	37	38	59

Particulars	June'23	March'23	June'22
Net cashgeneratedfromoperating activities	165	356	(47)
Net cash generated/(used in) investing activities	(189)	(225)	44
Net cash(usedin)financing activities	(1.18)	(97)	(0.65)
Net Increase /(Decrease) in cash and cash equivalents	(24.71)	35.02	(4.45)

Finolex Cables Limited | Q1FY24 Earning Presentation

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Key Highlights Revenue of all product

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(Rs. In Crore)
Electrical Cables Communication Cables Copper Rod Others
1200 450 51 50
1011 1032 142 383 386
400 50
1000 140
Q-o-Q Y-o-Y827 140 Q-o-Q 350 299 49
600800 (2)% 22% 136138 137 (2)% Y-o-Y2% 200250300 Q-o-Q(0.81)% Y-o-Y28% 464847 46 Q-o-Q2.6% 45 Y-o-Y(7.5)%
134
400 134 150 45
100 44
200 132
50 43
0 130 0
42
Q1FY23 Q4FY23 Q1FY22 Q1FY23 Q4FY23 Q1FY22 Q1FY23 Q4FY23 Q1FY22 Q1FY23 Q4FY23 Q1FY22
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Finolex Cables Limited | Q1FY24 Earning Presentation

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Finolex Cables Limited | Q1FY24 Earning Presentation 21

Safe Harbour

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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.

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Finolex Cables Limited | Q1FY24 Earning Presentation

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Thank you Finolex Cables Limited Regd. Office: 26-27, Mumbai-Pune Road, Pimpri, Pune - 411 018.

Tel.: +91-20-27475963 CIN: L31300MH1967PLC016531

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