Finolex Cables Rise Over 14% to All-Time High on Stellar Q4 Performance

Shares of Finolex Cables experienced a remarkable surge of over 14% during intra-day trading on Friday, reaching a record high of ₹1,308.25. This surge followed the company’s announcement of better-than-expected results for the quarter ending March 2024 (Q4FY24).

Financial Performance

The firm reported a 6.3% year-on-year (YoY) increase in its consolidated net profit, totaling ₹186.1 crore for Q4FY24, compared to ₹175 crore in the same period last year. Sequentially, the profit witnessed a significant jump of over 23% from ₹151 crore in the previous quarter.

Additionally, the revenue from operations witnessed a substantial increase of 18.3% to ₹1,450.69 crore in Q4FY24, as opposed to ₹1,226.14 crore in the corresponding period of the preceding fiscal year.

The stock’s surge to its new high of ₹1,308.25 marked a remarkable increase of 14.3% in intra-day deals on the day. Notably, the stock has experienced a staggering rise of over 69% from its 52-week low of ₹772.30, recorded on June 6, 2023. Over the past year, the stock has advanced by 33%, and in the year 2024 so far, it has seen a growth of over 22%.

The company’s operating level performance also demonstrated strength, with EBITDA rising by 11.2% to ₹162 crore in the quarter under review from ₹145.7 crore in the same period last year. The EBITDA margin for the reporting quarter stood at 11.6%, compared to 11.9% in the previous year.

Long-term Growth Potential

Furthermore, the board has recommended a dividend of ₹8 per equity share of ₹2 each fully paid up (400%) for the financial year ending March 31, 2024, subject to the approval of shareholders at the ensuing annual general meeting of the company.

For the financial year 2023-24 (FY24), the company witnessed a 14% growth in net profit, amounting to ₹571.60 crore from ₹501.74 crore in FY23. Total income from operations also rose by 12% to ₹5,232.44 crore from ₹4,679.24 crore in FY23.