Finolex Cables Ltd
NSE:FINCABLES
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Finolex Cables Ltd
Finolex Cables Ltd., a pivotal figure in India's electrical landscape, weaves its narrative across the fabric of the country's infrastructure with a rich tapestry of innovation and growth. Established in 1958 and headquartered in Pune, India, the company has firmly rooted itself in the manufacturing and marketing realms of electrical and telecommunication cables. Dominating market presence with a product range that extends from electrical cables and communication cables to engineering goods and home appliances, Finolex plays a crucial role in feeding the backbone of various industries. Its proficiency in producing high-quality copper and aluminum cables has cemented its reputation as a trusted supplier, offering solutions integral to power distribution, industrial applications, and home wiring.
How Finolex Cables Ltd. prospers is a testament to smart strategy and market responsiveness. The revenue engine is powered by its widespread product distribution network, reaching urban centers, rural enclaves, and industrial heartlands alike. Central to its business model is a meticulous focus on research and development, which drives both efficiency and innovation, allowing it to meet the ever-evolving demands of a dynamic market. Diversification into other verticals, such as ceiling fans and LED lighting systems, has enabled Finolex to tap into the burgeoning consumer electronics space, thus broadening its revenue base and future-proofing its earnings streams. Balancing traditional manufacturing prowess with strategic diversification, Finolex Cables continues to illuminate its path to sustained success and growth.
Finolex Cables Ltd., a pivotal figure in India's electrical landscape, weaves its narrative across the fabric of the country's infrastructure with a rich tapestry of innovation and growth. Established in 1958 and headquartered in Pune, India, the company has firmly rooted itself in the manufacturing and marketing realms of electrical and telecommunication cables. Dominating market presence with a product range that extends from electrical cables and communication cables to engineering goods and home appliances, Finolex plays a crucial role in feeding the backbone of various industries. Its proficiency in producing high-quality copper and aluminum cables has cemented its reputation as a trusted supplier, offering solutions integral to power distribution, industrial applications, and home wiring.
How Finolex Cables Ltd. prospers is a testament to smart strategy and market responsiveness. The revenue engine is powered by its widespread product distribution network, reaching urban centers, rural enclaves, and industrial heartlands alike. Central to its business model is a meticulous focus on research and development, which drives both efficiency and innovation, allowing it to meet the ever-evolving demands of a dynamic market. Diversification into other verticals, such as ceiling fans and LED lighting systems, has enabled Finolex to tap into the burgeoning consumer electronics space, thus broadening its revenue base and future-proofing its earnings streams. Balancing traditional manufacturing prowess with strategic diversification, Finolex Cables continues to illuminate its path to sustained success and growth.
Modest Revenue Growth: Revenue grew by about 5% for the quarter and 9% for the half year, trailing many peers due to headwinds in agricultural applications and a slower real estate sector.
Profitability Gains: EBITDA rose 26% and PAT increased 35% for the quarter, with half-year PAT up 21%.
Segment Performance: Wires and cables grew 8% this quarter and 12% for the half year, with industrial cables and solar applications leading growth. Cable volume surged 60%, while building wire and agri segments were flat to down.
Pricing Actions: A price hike of 3–3.5% was implemented in September to manage commodity volatility.
Muted Communication Cables: Volumes and revenues were subdued due to low fiber prices and ongoing contract negotiations. No meaningful contribution yet from BharatNet orders.
CapEx Progress: Major investments in preform and fiber draw plants are on track, with completion expected by March 2026.
FMEG Challenges & Plans: The FMEG segment continues to miss internal targets, though new product launches are planned and the company remains committed to the segment.
No Guidance: Management declined to provide revenue or margin guidance for the current or coming years.
