Finolex Cables Limited (FCL) at the meeting of its Board of Directors held has approved results for the second quarter of the financial year 2020-21.
The gradual unlocking across the country during the quarter and the improving business sentiments, meant a better quarter for the company. While the numbers improved significantly compared to the previous quarter, they were still slightly lower than the corresponding period of 2019-20. Improvements in volumes were seen across all product categories; this combined with repeated assurances from government towards economy building, brings tremendous us hope for the immediate future.
Net Sales for the quarter ended (QE) September 30, 2020 were Rs 6.39 billion as against Rs 7.15 billion for the corresponding period of the previous year representing a 10 per cent decline in value terms.
While volumes in electrical cables and communication cables reflected a similar trend (lower than the corresponding period of previous year), in the newer categories of lamps, switches, switchgear, fans and water heaters, there was a healthy growth of upwards of 20 per cent. The strategy to focus on better distribution is bringing rewards, though slowly.
Efforts on cost containment that were started in the previous quarter continue. Over the medium term these efforts will bring in a permanent reduction in operating costs.
Profit for the quarter, before taxes, was Rs 921 million, as compared to Rs 1.39 billion in the previous year.
Profit for the quarter, after taxes, was Rs 690 million, as compared to Rs 1.23 billion in the previous year.