Finolex Cables Limited announces Q1FY20 results
Finolex Cables Ltd., (FCL) at the meeting of its Board of Directors held today approved results for the first quarter of the financial year 2019-20. Net Sales for the quarter ended June 30th2019 were Rs 807.7crores as against Rs 791.2 crores for the corresponding period of the previous year representing a 2.1 % improvement in value terms.
Growth in Net Sales were affected by subdued construction activity, slowdown in automobile and communication sectors. Further commodity prices have fallen by over 12% during the comparable periods, which have affected revenue.
On volumes, Electrical Wires grew by a modest 3%, while in the communication sector OFC volumes declined due to delays in order conclusions as well as slowdown in Govt spending. It is expected that with Government formation completed by end of June, programs to improve connectivity with broadband and related technologies, will gain momentum.
New businesses contributed Rs 15 crores as against Rs 7 crores in the previous year. Volume showed improvement; however higher spends on advertisement and market development activities resulted in lower profitability. As volumes improve further, it is expected that profitability should improve as well.
Profit for the quarter, before taxes, was Rs.117.8 crores, as compared to Rs.139.8 crores in the previous year.