Finolex Cables Ltd (FCL), India’s leading manufacturer of electrical and communication cables on Monday announced its financial results for the first quarter of the fiscal year 2024-25. The company reported revenues of ₹1,230.5 crore, a two per cent increase compared to ₹1,204.3 crore in the same period last year.

In terms of volume, the electrical wires segment remained steady, while power cables saw a significant 20 per cent increase. The communication cables segment experienced mixed results, with an eight per cent decline in metal-based products but a ten per cent growth in optic fiber cable volumes. Notably, all new product categories exhibited substantial volume growth, contributing positively to the overall turnover.

Challenges

However, the quarter was not without challenges. A steep fall in copper prices from late May 2024, coupled with extreme summer heat and the General Elections, adversely affected business sentiments and the sale of electrical wires. Furthermore, price corrections implemented in June 2024 negatively impacted profit margins.

The company reported a net profit of ₹122.5 crore, 7 per cent decline from ₹132.3 crore in the same quarter last year.

Despite these challenges, FCL’s expansion plans remain on track. The E-Beam facility is ready for operation, pending regulatory approvals, and the Preform Facility is nearing completion, with commissioning expected towards the end of this fiscal year.

Finolex Cables Ltd is India’s largest manufacturer of electrical and communication cables. Its diverse product range includes applications for automobiles, lighting, cable TV, telephones, computers, and various industrial uses. The company has also expanded its product line to include electrical switches, LED lamps, fans, low voltage MCBs, water heaters, and electric irons.

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