Finolex Cables Ltd
NSE:FINCABLES
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.
Revenue Growth: Finolex Cables delivered strong Q3 results, with revenue close to INR 1,600 crores for the quarter, up 35% quarter-on-quarter, and 9-month revenue reaching INR 4,370 crores, up 17% year-on-year.
Volume Driven Performance: Growth was led by both price and strong volume gains, with Wires and Cables volumes up more than 25%, and Solar Cables operating at 80–85% capacity utilization.
Price Hikes: The company implemented five selling price increases in Q3 totaling a 12% correction, and has made two more so far in Q4 to offset commodity inflation, especially in copper.
Fiber Market Rebound: Global fiber prices have rebounded sharply from below $3 to about $5, improving the outlook for the Communication Cables business.
Capacity Expansion: Preform factory commissioning is underway and fiber draw capacity will double from 4 million to 8 million km by the end of Q1 next fiscal, supporting future demand.
Cash Flow Improvement: Q3 operating cash flow rose to INR 78 crores, up sharply from INR 9 crores last year.
Inventory Efficiency: Inventory days improved from 69 to 61, with further reduction seen as challenging due to SKU complexity.
Margin Outlook: Margins are recovering and could return to 8–9% as utilization rises, but competition and product mix remain key factors.
