Shares of Finolex Cables have surged over 25% in two days following better-than-expected results for the quarter ending March 2024 (Q4FY24).
On Monday, the stock soared by 11.7% during the day, reaching a record high of ₹1,433. This follows a significant 19.1% increase on Friday, where it hit an all-time high of ₹1,363.30. The stock closed the previous session 12.11% higher at ₹1,282.60.
Q4FY24 Performance
Finolex Cables reported a 6.3% year-on-year increase in consolidated net profit for Q4FY24, reaching ₹186.1 crore compared to ₹175 crore in the same period last year. Sequentially, the profit jumped over 23% from ₹151 crore in the previous quarter. Revenue from operations grew by 18.3%, reaching ₹1,450.69 crore, up from ₹1,226.14 crore in the same quarter last year.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 11.2% to ₹162 crore from ₹145.7 crore a year ago. The EBITDA margin for the quarter was 11.6%, slightly down from 11.9% last year.
Dividend Announcement
The board has recommended a dividend of ₹8 per fully paid equity share of ₹2 each (400%) for the financial year ending March 31, 2024. This is subject to shareholder approval at the upcoming annual general meeting.
Annual Performance
For the financial year 2023-24 (FY24), Finolex Cables’ net profit rose by 14% to ₹571.60 crore from ₹501.74 crore in FY23. Total income from operations increased by 12% to ₹5,232.44 crore from ₹4,679.24 crore in FY23.
Stock Performance
Following the recent rally, the stock has soared 85.5% from its 52-week low of ₹772.30, hit on June 6, 2023. Over the past year, the stock has risen more than 52% and 34% in 2024 year-to-date.
In May alone, the stock has climbed around 32%, marking its third consecutive month of gains. It added 5.2% in April and 8.7% in March, although it fell 15.6% in February but was up 2% in January.
Long-Term Gains
In the long term, Finolex Cables has delivered significant returns to investors, rising around 215% in the last five years and 225% in the last three years.
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