Industrial Products
Finolex Cables Limited engages in the manufacture and sale of electrical and communication cables, and other electrical appliances in India and internationally. The company operates through Electrical Cables, Communication Cables, Copper Rods, and Others segments. It offers electrical cables, such as 1100V and motor winding PVC insulated, automotive/battery, UPS, elevator, solar, and industrial cables, as well as heavy duty, underground, low and high voltage, power, and control cables; and communication cables, including optic fiber, coaxial, local area network, CCTV, speaker, jelly filled telephone, PE insulated telephone, and V-SAT cables. The company also provides copper rods; electrical switches, sockets, regulators, etc.; and retrofit/non-retrofit CFL lamps, T5 tube lights and fittings, and LED-based lighting solutions. In addition, it offers ceiling, table, wall, pedestal, and exhaust fans; switchgear products, such as miniature and residual current circuit breakers, molded case circuit breakers, and distribution boards; instant and storage water heaters; steam and dry irons; conduit pipes and fittings; and smart door locks and switches. The company also offers its products through retail outlets under the Finolex Houses brand name; and online retail stores. Finolex Cables Limited was founded in 1958 and is based in Pune, India.
Summary of Finolex Cables's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Nov 24
The management of Finolex Cables outlined a cautiously optimistic outlook, emphasizing stabilization and growth opportunities across key segments. Key points include:
Management anticipates gradual recovery in H2 FY25, driven by easing commodity pressures, government tenders, and new capacities.
Last updated: Nov 24
Question 1:
Sir, my first question is with regards to the BharatNet that you just spoke about in your opening remarks and the BSNL order. So you're saying... Could you provide more color on the quantum of the order, regions, contract terms, and partners involved?
Answer: Management clarified that their partners won 3 bids in the BSNL BharatNet tender, but specific order values and regional details were not disclosed as the process is ongoing. Orders are expected to be finalized by late Q3, with supplies starting by February/March 2025.
Question 2:
Sir, the volume growth in electrical wires has been muted. Could you explain the demand scenario and competition?
Answer: Volumes were impacted by copper price volatility (sharp declines from $11,000 to $8,200), leading to trade destocking. Demand normalization began post-September, but persistent price swings continue to affect trade behavior. Margins were hit by price cuts (~11% in Q2) and project-based sales mix.
Question 3:
What is Finolex's current market share in wires, and what is the update on pending litigation?
Answer: Market share in wires is ~18-20% annually, stable over the last 2-3 years. On litigation, the NCLAT directed NCLT to resolve ownership disputes over Orbit shares; no further details were shared.
Question 4:
Could you detail capacity, expansion plans, and industry trends for electrical cables?
Answer: Current wire capacity is 23-24 lakh coils/month (65-70% utilized). Capex focuses on fiber preform plants (commissioning Q4 FY25), auto cable expansion (Roorkee, operational by December 2024), and e-beam facilities (awaiting BIS certification). Power cables remain a small segment (Rs.400cr revenue) due to tender-driven risks.
Question 5:
What is the revenue/margin guidance for FY25?
Answer: FY24 revenue was ~Rs.5,000cr; FY25 could reach ~Rs.6,000cr if copper stabilizes. Margins are expected to recover to ~10% as commodity volatility eases, with H2 typically contributing 60% of annual revenue.
Question 6:
How will communication cable margins improve with BharatNet orders?
Answer: Margins (currently 2-3%) are expected to rise to historical 7-8% as government orders resume, boosting volume and fixed-cost absorption. Preform integration (Phase 1 by Q4 FY25) will enhance competitiveness.
Question 7:
What is the FMEG business's H1 performance and outlook?
Answer: FMEG revenue grew to Rs.128cr in H1 (vs. Rs.100cr YoY), driven by lighting, switches, and conduits. Full-year target is Rs.300cr (~40% growth), with breakeven at Rs.250-260cr. Price erosion in lighting remains a challenge.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Recent profitability of 13% is a good sign.
Size: Market Cap wise it is among the top 20% companies of india.
Balance Sheet: Strong Balance Sheet.
Technicals: SharesGuru indicator is Bearish.
Smart Money: Smart money looks to be reducing their stake in the stock.
Momentum: Stock is suffering a negative price momentum. Stock is down -3.5% in last 30 days.
Comprehensive comparison against sector averages
FINCABLES metrics compared to Industrial
Category | FINCABLES | Industrial |
---|---|---|
PE | 19.02 | 37.91 |
PS | 2.49 | 2.90 |
Growth | 6.2 % | 13.1 % |
FINCABLES vs Industrial (2021 - 2025)
Analysis of Finolex Cables's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Electrical cables | 60.1% | 972.1 Cr |
Copper rods | 27.9% | 451 Cr |
Communication cables | 8.1% | 130.3 Cr |
Others | 3.9% | 63 Cr |
Total | 1.6 kCr |
Investor Care | |
---|---|
Dividend Yield | 1.72% |
Dividend/Share (TTM) | 15 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 45.46 |
Financial Health | |
---|---|
Current Ratio | 7.17 |
Debt/Equity | 0 |
Debt/Cashflow | 135.11 |
Valuation | |
---|---|
Market Cap | 13.22 kCr |
Price/Earnings (Trailing) | 19.02 |
Price/Sales (Trailing) | 2.49 |
EV/EBITDA | 14.13 |
Price/Free Cashflow | 48.53 |
MarketCap/EBT | 14.89 |
Fundamentals | |
---|---|
Revenue (TTM) | 5.32 kCr |
Rev. Growth (Yr) | -3.15% |
Rev. Growth (Qtr) | -10.01% |
Earnings (TTM) | 695.16 Cr |
Earnings Growth (Yr) | -2.47% |
Earnings Growth (Qtr) | 24.9% |
Profitability | |
---|---|
Operating Margin | 12.73% |
EBT Margin | 16.71% |
Return on Equity | 13.39% |
Return on Assets | 11.39% |
Free Cashflow Yield | 2.06% |
Understand Finolex Cables ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
ORBIT ELECTRICALS PRIVATE LIMITED | 30.7% |
FINOLEX INDUSTRIES LIMITED | 14.51% |
NIPPON LIFE INDIA TRUSTEE LTD-A/C NIPPON INDIA NIF | 3.25% |
ANIL RAMCHAND CHHABRIA | 3.09% |
TATA AIA LIFE INSURANCE CO LTD-PENSION EQUITY FUND | 2.56% |
HSBC INFRASTRUCTURE FUND | 2.53% |
HDFC MUTUAL FUND - HDFC DIVIDEND YIELD FUND | 1.96% |
LGOF GLOBAL OPPORTUNITIES LIMITED | 1.88% |
GOPICHAND PARMANAND HINDUJA | 1.88% |
KATARA ARUNA MUKESH | 1.84% |
HDFC LIFE INSURANCE COMPANY LIMITED | 1.57% |
LEELA RAMCHAND CHHABRIA | 1.16% |
DEEPAK KISHAN CHHABRIA | 0.79% |
SUNITA KISHANDAS CHHABRIA | 0.56% |
PRAKASH PRALHAD CHHABRIA | 0.54% |
KISHANDAS PARASHRAM CHHABRIA | 0.45% |
VIJAY KISHANDAS CHHABRIA | 0.35% |
JANAK DEEPAK CHHABRIA | 0.2% |
GAYATRI PRAKASH CHHABRIA | 0.07% |
HANSIKA HIYA PRAKASH CHHABRIA | 0.07% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Finolex Cables against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
HAVELLS | Havells IndiaConsumer Electronics | 1 LCr | 20.99 kCr | +7.15% | +2.51% | 71.64 | 4.78 | +15.14% | +18.43% |
POLYCAB | Polycab IndiaCables - Electricals | 82.84 kCr | 21.23 kCr | +6.91% | -2.24% | 44.42 | 3.9 | +24.92% | +11.16% |
KEI | KEI IndustriesCables - Electricals | 28.35 kCr | 9.19 kCr | +5.22% | -24.27% | 44.41 | 3.08 | +18.15% | +15.99% |
VGUARD | V-Guard IndustriesHousehold Appliances | 15.52 kCr | 5.4 kCr | +0.96% | +3.95% | 51.94 | 2.87 | +15.32% | +27.60% |