Finolex Cables, in a recent investor presentation, has reported handsome growth in revenues of electrical cables for Q2 (July to September) of FY22.
The Pune-headquartered company recorded revenues of Rs.783.79 crore for Q2 of FY22, in the electrical cables segment. This was 45.5 per cent higher than in Q2 of FY21. On a sequential quarter basis, growth was 40.6 per cent.
The presentation observed that the electrical cables segment improved due to economic activities across the country. “Most markets opened up completely by the second week of July following improvements in control over the corona epidemic.”
Electrical cables business in volume terms increased by 5 per cent, mostly driven by improvement in economic activities in real estate and auto sector, the presentation said.
Discussing business concerns, Finolex Cables said that the current quarter (Q2 of FY22) witnessed steep increases in commodity prices (copper, steel, aluminum, PVC, fuel etc.) as also some supply chain constraints on imported material. “Thus, while volumes climbed, so did the costs,” the presentation noted.
Diversification
Finolex Cables, over the years, has diversified into a range of products like switchgear and domestic appliances. The presentation said that improved distribution footprint was is starting to pay off as volumes have begun to grow. All products in this segment grew by between 6 per cent and 150 per cent, in volume terms.
This segment includes products like fans, water heaters, lamps, switches, switchgear and conduit pipes.
Capex
In Q2 of FY22, Finolex Cables undertook capital expenditure of Rs.24.78 crore. This was substantially higher than the Rs.13.16 crore in Q2 of FY21, and Rs.6.25 crore in Q1 of FY22.
