Finolex Cables has rallied 13% to Rs 345, also its lifetime high on the BSE, after the company reported a robust 77% year on year (YoY) growth in net profit at Rs 83 crore, on back of strong operational performance. The company had a profit Rs 47 crore in a year ago quarter.
Net sales for the quarter grew 3% at Rs 676 crore against Rs 654 crore in the corresponding quarter of previous fiscal.
“The low value growth is primarily due to the fall in the commodity prices over the same period. In volume terms, however, there was a 12% growth in electrical cables while in the communication cables there was a growth of more than 20%,” Finolex Cables said in a statement.
Overall, during the quarter, margins improved by 250 basis points to 19%, due to better product mix as well as continuous margin monitoring, it added.
The board has recommended a final dividend of 125 % (i.e. Rs 2.50 per equity share of Rs 2 each fully paid up) for the financial year ended March 31, 2016 which includes special one-time dividend of 25% (i.e. Rs 0.50 per equity share of Rs 2 each fully paid up) to pay homage to late Mr. P P Chhabria, founder promoter director and former executive chairman of Finolex Cables.
At 09:44 AM, the stock was up 11% at Rs 340 on the BSE on back of heavy volumes. A combined 493,041 equity shares changed hands compared to an average sub 200,000 shares that were traded daily in past two weeks on the BSE and NSE.
source: Business standard
