Finolex reports 107% jump in net profit; steps up dividend to 60%
New Delhi, May 2 (UNI) Finolex Cables Limited (FCL) today reported a 107.5 per cent increase in its net profit at Rs 21 crore for the fourth quarter ended 31 March 2006, as against Rs 10 crore for the same period last year, while stepping up the dividend to 60 per cent.
The net profit for the year ended March 2006, stood at Rs 50.37 crore, a jump of 64 per cent from Rs 30.77 crore last fiscal.
Total income for the fourth quarter was Rs 231.22 crore, up by 59 per cent from Rs 145.23 crore for the same period last year, while total income for the year ended March 2006 rose by 32 per cent at Rs Rs 776.17 crore from Rs 587.49 crore last year.
The Company has stepped up the dividend on equity shares from 45 per cent to 60 per cent.
The total figures for the period ended 31st March 2006, include results of the merger effect of subsidiary companies -- Finolex Wire Products Ltd and Finolex Finance Ltd.
Commenting on the performance of the Company, Finolex MD Deepak Chhabria said, ''The year gone by was an eventful year. The copper prices have showed a secular rising trend. Electrical cables business is growing at a good rate.'' He added, ''To keep pace with higher demand for electrical cables, conversion of the Urse JFTC facility to produce electrical cables has made a positive contribution. Introduction of new products like Electrical Switches, Compact Fluorescent Lamps, etc, will enhance the business profile of the Company.
In June 2006, the company will introduce electrical switches in the market under the brand name 'Finoswitch'.
The Company is also setting up a manufacturing unit for Compact Fluorescent Lamps (CFLs) which are expected to be on the retail shelf during the first quarter of the current financial year.
The CFLs will be introduced in the market under the brand name 'Finoglow'. The third product to be introduced namely High Voltage Power Cables (upto 66 KV) will be available for sale during the fourth quarter of the current financial year.
Manufacturing units for all these products are coming up at Urse where the Company has about 140 acres of land and existing infrastructure.
FCL is the market leader and the largest producer of cables in domestic cable industry. Its product applications range from lighting, cable TV, telephone, and computers to industrial applications.
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