Finolex Cables Ltd. share price target

Finolex reported weak results wherein revenues grew by merely 2.1% (6% below our estimates) due to lower volume growth of 3% y-o-y in electrical wires hit by subdued construction activity and deceleration in OFC in communication segment. EBITDA declined 18% on higher other expenses including higher promotional expenses in its fast moving electronic goods (FMEG) segment leading to contraction of 328 bps y-o-y in EBIDTA margin to 13.1%. However, due to lower ETR (31% v/s 35% in Q1FY19) the decline in PAT was restricted to 10% y-o-y to Rs...

(up 3.4% y-o-y), led by a marginal growth in electrical cable segment (up 6% y-o-y, over 80% of revenue) and new products (lup 10.4% y-o-y with less than 5% share) and decline in communication cable segment's revenue (down 15.4% y-o-y). Volumes in the electrical cables business grew by 18% y-o-y, while power cable volumes fell marginally. The communication...

Limited (FCL) is expected to witness further delay in tendering of orders in the Bharat Net phase II and the time-frame for tendering these orders is still not clear. Going ahead, the impending elections will further slow the tendering process. In the consumer durables segment, demand pick-up is still slow and management's earlier target of Rs. 100 crore...

Finolex Cables Ltd (FCL) is India's largest manufacturer of electrical (80% of revenue) and telecommunication cables (16%). FCL has a wide distribution network with a high brand recall....

Volumes Impacted but Set to Recover in H2FY19: Finolex top line grew marginally by 3.8% YoY on the back of strong performance from communication cables which grew by 14.3%. The growth was lower due to tepid performance of electrical segment.

Finolex Cables Ltd (FCL) is India's largest manufacturer of electrical (80% of revenue) and telecommunication cables (16%). FCL has a wide distribution network with a high brand recall. Q1FY19 revenue and EBITDA grew by robust 17% & 18% YoY respectively, but PAT declined by 11% YoY owing to higher tax expenses. EBITDA margin improved by 10bps YoY to 16.4% led by lower cost....

Higher Tax Provision Impacted Bottom Line; Finolex top line grew by 6.4% YoY on the back of strong performance from Electrical cables which grew by 11.6%.

Volume and Revenue Growth Across Segments: Finolex top line grew by 12.2% YoY on the back of strong performance from communication cable which grew by 16.6% and electrical cable showing a growthof 7.5%.

Finolex Cables Ltd (FCL) is India's largest manufacturer of electrical (85% of revenue) and telecommunication cables (9%). FCL has a wide distribution network with a high brand recall....

Margins maintained despite higher input cost: Finolex top line grew by 10.7% for 9MFY18 which was in line with expectations on the back of strong performance from communication cable which grew by 34.6%. However electrical cable segment has grown by 5.3% due to lower volumes on account of high GST rates which are now normalised.