Finolex Cables Ltd (FCL) has announced the results for the fourth quarter as well as the full year of 2020-21.
Revenues for the quarter ended March 2021 were Rs 9.21 billion as against Rs 6.51 billion for the corresponding period in the year 2019-20, representing a 41 per cent growth in value terms. In volume terms, electrical wires increased by 14 per cent, while power cables declined by 18 per cent. Within the communication cables segment, there is an increase of 8 per cent in volumes during the quarter, with most product lines contributing to the growth except OFC. New products within the FMEG sector all grew by more than 40 per cent each. The PVC conduit pipe launch gives us an exciting new opportunity to strengthen the bond with customers – the first two months sale after launch has been encouraging.
For the full year 2020-21, sales were Rs 27.68 billion as against Rs 28.77 billion in the previous year – a decline of 3.8 per cent, mainly caused by Covid related lockdown in Q1. Consequently, volumes for the year are lower than what was achieved in the previous year – electrical wires by 10 per cent and all communication product lines by 1 per cent. Newer product lines (Fans, Switchgear and Water Heaters) have all increased between 24 per cent to 524 per cent in volumes as compared to the previous year. In addition to the product range, and expansion of the distribution network and continued presence in visual media have all contributed to the better revenues and volumes within these product segments.
Profit for the quarter, before taxes, was Rs 1.36 billion, as compared to Rs 1.35 billion in the previous year – a nominal growth of 1 per cent.
For the full year, profit before taxes stood at Rs 3.92 billion as against Rs 5.01 billion in the previous year – a decline of 22 per cent, primarily attributable to negligible revenue (and consequently lower profits) in Q1 due to Covid related disruptions, as well lower dividends from investments during the rest of the year.
PAT for Q4 of 2020-21 stood at Rs 961 million as against Rs 1.17 billion for the corresponding period of the previous year – a decline of 18 per cent. The previous year’s profit included dividend receipts from an associate company, during which period of time dividend receipts were tax-free in the hands of the recipient.
For the full year, profit after taxes was Rs 2.82 billion as against Rs 4.02 billion in the previous year – included in the profits of the previous year are dividends of Rs 800 million (tax-free) received from associate companies.
For the year ended March 31, 2021, the consolidated results reflect net sales of Rs 27.68 billion as against Rs 28.77 billion in the previous year and profit after taxes of Rs 4.61 billion as against Rs 3.91 billion in the previous year.
