FINOLEX CABLES 2023-24 Annual Report Analysis

Wed, 11 Sep

FINOLEX CABLES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

FINOLEX CABLES Income Statement Analysis

• Operating income during the year rose 11.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.6% in FY24 as against 12.9% in FY23.
• Depreciation charges decreased by 5.5% and finance costs increased by 63.7% YoY, respectively.
• Other income grew by 48.4% YoY.
• Net profit for the year grew by 29.2% YoY.
• Net profit margins during the year grew from 11.3% in FY23 to 13.0% in FY24.

FINOLEX CABLES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	44,811	50,144	11.9%
Other income	Rs m	1,182	1,753	48.4%
Total Revenues	Rs m	45,993	51,897	12.8%
Gross profit	Rs m	5,789	7,343	26.8%
Depreciation	Rs m	464	439	-5.5%
Interest	Rs m	12	20	63.7%
Profit before tax	Rs m	6,495	8,638	33.0%
Tax	Rs m	1,452	2,121	46.1%
Profit after tax	Rs m	5,043	6,517	29.2%
Gross profit margin	%	12.9	14.6
Effective tax rate	%	22.4	24.6
Net profit margin	%	11.3	13.0

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FINOLEX CABLES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 16.4%.
• Long-term debt stood at Rs 8 million as compared to Rs 3 million during FY23, a growth of 224.0%.
• Current assets rose 12% and stood at Rs 43 billion, while fixed assets rose 10% and stood at Rs 27 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 70 billion as against Rs 63 billion during FY23, thereby witnessing a growth of 11%.

FINOLEX CABLES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	43,704	49,459	13.2
Current Liabilities	Rs m	9,361	10,897	16.4
Long-term Debt	Rs m	3	8	224.0
Total Liabilities	Rs m	62,502	69,627	11.4
Current assets	Rs m	38,276	43,017	12.4
Fixed Assets	Rs m	24,226	26,609	9.8
Total Assets	Rs m	62,502	69,627	11.4

FINOLEX CABLES Cash Flow Statement Analysis

• FINOLEX CABLES's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 61.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 95.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 257 million from the Rs 350 million net cash flows seen during FY23.

FINOLEX CABLES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	3,563	5,769	61.9%
Cash Flow from Investing Activities	Rs m	-2,246	-4,396	-
Cash Flow from Financing Activities	Rs m	-967	-1,117	-
Net Cash Flow	Rs m	350	257	-26.7%

Current Valuations for FINOLEX CABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.6, an improvement from the EPS of Rs 33.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,383.0, stands at 45.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 21.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	293.0	327.9
TTM Earnings per share	Rs	33.0	42.6
Diluted earnings per share	Rs	33.0	42.6
Price to Cash Flow	x	22.5	21.9
TTM P/E ratio	x	28.6	45.1
Price / Book Value ratio	x	2.1	3.1
Market Cap	Rs m	91,121	152,282
Dividends per share (Unadj.)	Rs	7.0	8.0

Ratio Analysis for FINOLEX CABLES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.9x during FY24, from 4.1x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 426.5x during FY24, from 524.8x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 13.2% during FY24, from 11.5% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 17.5% during FY24, from 14.9% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 9.4% during FY24, from 8.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	4.1	3.9
Debtors’ Days	Days	2	1
Interest coverage	x	524.8	426.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	9.4
Return on equity	%	11.5	13.2
Return on capital employed	%	14.9	17.5

To see how FINOLEX CABLES has performed over the last 5 years, please visit here.

FINOLEX CABLES Share Price Performance

Over the last one year, FINOLEX CABLES share price has moved up from Rs 1,159.5 to Rs 1,383.0, registering a gain of Rs 223.5 or around 19.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,499.2 (down 0.1%). Over the last one year it has moved up from 47,746.4 to 71,499.2, a gain of 23,753 points (up 49.7%).

Overall, the S&P BSE SENSEX is up 21.4% over the year.

(To know more, check out historical annual results for FINOLEX CABLES and quarterly results for FINOLEX CABLES)