Finolex Cables Ltd (FCL), a leading Indian manufacturer of electrical and communication cables, has reported a modest revenue increase for the first quarter of the fiscal year 2024-25. The company’s revenue stood at ₹1,230.5 crore, reflecting a 2% growth compared to ₹1,204.3 crore in the same period last year.
The electrical wires segment maintained stable volumes, while power cables saw a notable 20% rise. However, the communication cables segment experienced mixed performance, with an 8% decline in metal-based products but a 10% growth in optic fiber cable volumes. Additionally, all new product categories recorded significant volume growth, contributing positively to the overall turnover.
Despite these gains, the quarter posed several challenges. A sharp drop in copper prices from late May 2024, combined with extreme summer heat and the General Elections, dampened business sentiment and impacted the sale of electrical wires.
Furthermore, price corrections in June 2024 negatively affected profit margins. The company reported a net profit of ₹122.5 crore, marking a 7% decline from ₹132.3 crore in the corresponding quarter of the previous year.
Nevertheless, Finolex Cables remains committed to its expansion plans. The E-Beam facility is ready for operation, pending regulatory approvals, and the Preform Facility is expected to be commissioned by the end of the fiscal year.
Finolex Cables Ltd is the largest manufacturer of electrical and communication cables in India, with a diverse product range that includes applications for automobiles, lighting, cable TV, telephones, computers, and various industrial uses. The company has also ventured into manufacturing electrical switches, LED lamps, fans, low voltage MCBs, water heaters, and electric irons.
