Finolex Cables shares surge over 14% to new high on strong Q4 results; company announces dividend

Shares of Finolex Cables surged over 14 percent in intra-day deals on Friday to its record high of 1,308.25 after the company posted better-than-expected results for the quarter ended March 2024 (Q4FY24).

The firm posted a 6.3 percent year-on-year (YoY) increase in its consolidated net profit at 186.1 crore for the fourth quarter of FY24 as against 175 crore in the same period last year. On a sequential basis, the profit jumped over 23 percent from 151 crore in the previous quarter.

Meanwhile, its revenue from operations increased 18.3 percent to 1,450.69 crore in Q4FY24 versus 1,226.14 crore in the corresponding period of the preceding fiscal.

The stock rose as much as 14.3 percent to its new high of 1,308.25 in intra-day deals today. It has now soared over 69 percent from its 52-week low of 772.30, hit on June 6, 2023. The stock has advanced 33 percent in the last 1 year and over 22 percent in 2024 YTD.

In May, it surged 22 percent, extending gains for the third straight month. It rose 5.2 percent in April and 8.7 percent in March. However, it fell 15.6 percent in February. Meanwhile, in January 2024, the stock was up 2 percent.

At the operating level, EBITDA rose 11.2 percent to 162 crore in the quarter under review from 145.7 crore in the year-ago period.

The EBITDA margin came in at 11.6 percent in the reporting quarter as compared to 11.9 percent last year. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Moreover, the board has also recommended a dividend of 8 per equity share of 2 each fully paid up (400 percent) for the financial year ending March 31, 2024, subject to the approval of shareholders at the ensuing annual general meeting of the company.

Overall, for the financial year 2023-24 (FY24), the company’s net profit grew 14 percent to 571.60 crore from 501.74 crore in FY23. Meanwhile, its total income from operations rose 12 percent to 5,232.44 crore from 4,679.24 in FY23.

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Published: 24 May 2024, 10:30 AM IST

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