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Investments in Indian Equity and Research => India Stocks and Shares => Topic started by: chetan on October 25, 2010, 10:28:14 AM

Title: Finolex Cables - Results Disappointing
Post by: chetan on October 25, 2010, 10:28:14 AM

Finolex Cables’ 2Q FY11 operating results were disappointing due to a sharp fall in EBITDA margin by 810bp to 8.5%. This was primarily a result of a rise in copper prices (key raw material), which was not passed onto customers deliberately in order to maintain market share (signalling competitive intensity).
Reported profit of INR189m (9% lower than our estimate) benefited from high other income of INR148m, while profit adjusted for forex loss of INR121m declined 43% y-o-y to INR267m.

Finolex reported a forex loss of INR121m (2.5% of sales) on derivative contracts in 2Q FY11. Management has guided that these derivative losses will continue till FY12, which constitutes a potential risk to earnings going forward

EPS Estimates of Finolex Cables for FY 11 6.8

Title: Re: Finolex Cables - Results Disappointing
Post by: syedtaalib on April 27, 2011, 06:07:02 PM

http://www.docstoc.com/docs/71273057/Finolex-Cables-RU3QFY2011-090211

maybe this could help!