Finolex Cables

“I still believe that at the end of the year provided the demand situation remains similar to what it is today, I still believe that you should have a double-digit margin number, it'll probably be in the low-double digit numbers.”

“If demand is as robust as it is today, then yes, that would be our effort to exit at full utilization but we will have to see how demand keeps up there.”

“On the expansion side, I had mentioned in the last call that the preform production has commenced. We are on the way to stability. Hopefully in the next couple of months that should happen.”

“The intention is to use all of it for making cables, our intention is not to sell the preform.”

“We will go back to our drawing boards to see what we need to do in terms of Phase 2.”

“Yes, we have used up all the preforms that we had. There were difficulties in getting preforms, because you know how tight the market is at this point in time.”

“Cabling utilization, I think one plant is full. The other plant is three-fourth.”

“electrical cables continues to be our largest business segment and we've reported a revenue of INR 1,767 crores compared to INR 1,206 crores in the corresponding quarter of last year. This represents a growth of approximately 47%.”

“Communication Cables delivered a particularly strong performance during the quarter with a revenue increase from INR 109 crores to INR 176 crores, which is a growth of approximately 62% with margins close to 30%.”

“Our exports for the quarter was about INR 50 crores, almost the entire value that we did last year.”

“On the exports this time, there were opportunities on the optic fiber side so those provided a fairly large margin. Now those opportunities may not happen every month or every quarter so in terms of sustainability, I would be a little conservative on that.”

“But in terms of the opportunities for exporting, we are now more aggressive than we had been in the past. We've been exporting in the last four - five months, we've exported power cables, we've exported optic fiber cables, and also the traditional products that we used to export like the submersible cables and so on.”

“On the electrical cables side, automotive cables, battery cables, flexible wires, solar and agricultural applications, all of them did extremely well posting fairly high double-digit growth numbers and this is just not a price growth, it is also volume-led growth.”

“At the end of the quarter, channel inventory, especially on building wires was low, that has been reflected in the low single-digit growth in volumes for building wire and we did see a reduction, a destocking of the inventory at the channel.”

“there has been an explosion of demand from data centers and usage which is riding on AI, which has resulted in a huge demand for fiber cables and this is a global phenomenon.”

“The opportunity size can be substantial as large hyperscalers expand into India. We see that trend which is currently happening in the U.S. and in Europe to show up in India as well.”

“No, not really. I think with the prices as high as they are, the winners are waiting and watching.”

“And as a result, the PBT margin has improved from 11.8% in quarter one of FY26 to 13.4% in the current quarter, while the PAT margin has improved from 9.6% to 10.7% during the quarter.”

“They would still be in the double-digits, but not as high as what you see today. Basically, while the margins have expanded, expect this to settle down in the coming quarters once the existing RM gets consumed.”

“The standard fiber, which is the technical term there is G.652.D, was somewhere around USD 5 to 6 back in December last year, had climbed up to USD 17 - 18 over the last six, seven months. I think currently is settling at about between USD 12 and USD 13 per kilometer that's where it is today.”

“I am not able to predict that but so long as the demand continues to be where it is today, I guess the price will remain in this range.”

“Yes, I don't see it improving from here. But also the current price levels of raw materials is kind of fluid.”

“I had mentioned that the JV was doing well and had posted a profit of INR 24 crores last year that trend continues in the current quarter. They generated a revenue of about INR 87 crores with a profit of about INR 7 crores.”

“We should be capable of making those and supplying those, let me say it differently, we should be capable of supplying those in the not too distant future.”

“I would like to introduce Mr. Sachin Naik, who has joined us as the CFO effective 1st of June this year.”

“Added to this was also the fact that post-March, there have been issues around supply chain, whether it relates to availability of fuel or it relates to availability of PVC. We've been able to handle all of those changes, albeit, at a higher cost.”

“It is, but then today, the situation is that demand has far outstripped supply and so that has pushed up the prices to certain levels, which may not sustain all along.”

“Commercial LPG was just not available, and therefore a lot of the device manufacturers, especially fans, they were not able to supply the kind of quantities that were required.”

“The second part of that group is also the conduit pipes, where again, availability of PVC and the price of PVC that was available was a hindrance there, those are changing now.”

“Yes, there are some issues in terms of easy availability of that item, it is a restricted item. The lead time is pretty long.”

“Our revenue from operations for Q1 of FY27 stood at INR 2,013 crores, as compared to INR 1,396 crores in the corresponding quarter of last year. This represents a growth of approximately 44% in revenue.”

“Profit before tax stood at INR 277 crores as against INR 171 crores in Q1 of last year, registering a growth of approximately 62%.”

“We will have a draw capacity of 8 million kilometers, so at 8 million kilometers and assuming an average price of USD 11 per kilometer of fiber, then you're looking at about USD 88 million of revenue if I only sell fiber.”

“so USD 22 million times 100, if it was only fiber, would be around INR 250 crores to INR 260 crores, if it was only fiber. Then you add the cable value addition. If I am selling out everything that I have, INR 300 crores is not a difficult number.”

“Whereas, if I'm selling complicated designs where the fiber count is higher, 96, 144, 288 or for data center applications where, like I said, it runs into thousands of fibers in one cable, then the numbers can be substantially different. Then the value addition can easily go up by 20% - 30%.”