How has been the historical performance of Finolex Cables?

Nov 24 2025 10:54 PM IST

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Finolex Cables has shown consistent growth in net sales and profitability, with net sales increasing from ₹2,877.30 Cr in Mar'20 to ₹5,318.89 Cr in Mar'25, and earnings per share rising from ₹25.56 to ₹45.82 during the same period. Overall, the company's financial metrics indicate a robust growth pattern.

Revenue and Profit Growth

Finolex Cables’ net sales have shown a robust increase, rising from ₹3,077.79 crores in March 2019 to ₹5,318.89 crores in March 2025. This represents a compound growth trend, with notable acceleration post-2021, reflecting expanding market demand and effective sales strategies. The total operating income mirrors this growth, as other operating income remained nil throughout the period.

Operating profit before other income (PBDIT excl. OI) experienced fluctuations but generally trended upwards, reaching ₹541.28 crores in March 2025 from ₹469.67 crores in March 2019. Including other income, operating profit rose to ₹738.70 crores in the latest fiscal year, underscoring the company’s ability to generate ancillary income streams.

Profit before tax increased from ₹509.84 crores in March 2019 to ₹690.42 crores in March 2025, despite some volatility in intermediate years. After accounting for taxes, the profit after tax (PAT) showed a commendable rise from ₹307.09 crores in 2019 to ₹468.74 crores in 2025. When factoring in share in profit of associates, consolidated net profit surged to ₹700.77 crores in March 2025, up from ₹407.47 crores six years prior.

Margins and Efficiency

The operating profit margin excluding other income declined from 15.26% in 2019 to 10.18% in 2025, indicating some pressure on operational efficiency or increased costs. Gross profit margin also contracted from 17.88% to 13.86% over the same period. Despite this, the PAT margin remained relatively stable, hovering around 13%, suggesting effective cost management and tax planning.

Raw material costs, the largest expenditure component, rose in absolute terms from ₹2,292.09 crores in 2019 to ₹4,359.53 crores in 2025, consistent with revenue growth. Employee costs increased moderately, reflecting workforce expansion or wage inflation, while other expenses also trended upwards but at a controlled pace.

Balance Sheet Strength and Asset Growth

Finolex Cables’ total assets expanded significantly from ₹3,406.80 crores in 2020 to ₹6,286.54 crores in 2025, driven by increases in both non-current and current assets. Notably, non-current investments grew from ₹874.35 crores in 2020 to ₹1,571.68 crores in 2025, indicating strategic capital allocation. Current investments also surged, more than quadrupling from ₹509.00 crores in 2021 to ₹2,414.38 crores in 2025.

Shareholders’ funds strengthened from ₹3,003.71 crores in 2020 to ₹5,495.25 crores in 2025, reflecting retained earnings and reserves accumulation. The company maintained a very low debt level, with total borrowings under ₹1 crore, underscoring a conservative capital structure and low financial risk.

Book value per share rose steadily from ₹196.39 in 2020 to ₹359.28 in 2025, signalling enhanced shareholder value and equity growth over time.

Cash Flow and Liquidity

Operating cash flow showed improvement, with ₹576 crores generated in 2024 compared to ₹154 crores in 2019, highlighting better cash realisation from operations. Investing activities reflected consistent capital expenditure, with outflows peaking at ₹859 crores in 2021 but moderating thereafter. Financing activities remained stable with modest outflows, indicating prudent financial management.

Cash and bank balances fluctuated, notably high at ₹933.88 crores in 2020 but normalising to ₹145.47 crores by 2025, suggesting strategic liquidity management aligned with operational needs.

Summary of Historical Performance

Over the six-year period ending March 2025, Finolex Cables has exhibited strong revenue growth, nearly doubling its net sales. Profitability metrics have generally improved, with consolidated net profit rising substantially, supported by income from associates. The company’s balance sheet has strengthened considerably, with growing reserves and minimal debt, enhancing financial stability.

While margins have experienced some compression, the firm’s ability to maintain steady PAT margins and increase earnings per share to ₹45.82 in 2025 reflects operational resilience. Cash flow trends indicate improving operational efficiency and disciplined capital expenditure. Overall, Finolex Cables’ historical performance portrays a well-managed enterprise with solid fundamentals and growth prospects.

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