Finolex Cables Stock Skyrockets 19%, Achieves New Record High on Strong Q4 Performance

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Finolex Cables Stock Skyrockets 19%, Achieves New Record High on Strong Q4 Performance

Team FS

24/May/2024

Key Points:

Finolex Cables witnesses a staggering 19% surge in shares, reaching an all-time high of Rs 1,361 apiece, driven by robust Q4FY24 performance.
The company reports a 6.3% year-on-year increase in consolidated net profit and an 18.3% rise in revenue from operations, beating Street estimates.
Despite a slight contraction in EBITDA margin, Finolex Cables recommends a dividend of Rs 8 per share, reflecting confidence in its financial strength and growth prospects.

Investors witnessed a remarkable surge in Finolex Cables shares, skyrocketing by an impressive 19% to hit an all-time high of Rs 1,361 apiece. This extraordinary rally comes on the heels of the company's stellar performance in the January-March quarter of FY24, surpassing market expectations.

Robust Financial Results Exceed Expectations:
Finolex Cables reports a consolidated net profit of Rs 186 crore in Q4FY24, marking a significant 6.3% increase from the year-ago period. Additionally, revenue from operations surged by 18.3% year-on-year, reaching Rs 1,450 crore, outperforming analyst forecasts. Despite a slight contraction in EBITDA margin, which stood at 11.6% in the March-ended quarter, the company's operational performance remains robust.

Confidence in Growth:
The firm's board demonstrates confidence in its financial strength and growth trajectory by recommending a dividend of Rs 8 per share for the financial year ending March 31, 2024, subject to shareholders' approval. This dividend declaration reflects Finolex Cables' commitment to delivering value to its shareholders amidst its expansion and diversification efforts.

Diversified Product Range and Market Outperformance:
Finolex Cables, known as the largest manufacturer of electrical and telecommunication cables, offers a wide range of wire and cable products used across various industries, including automobiles, lighting, cable TV, and telecommunications. The company's foray into electrical switches, LED-based lamps, fans, and water heaters further diversifies its product portfolio, enhancing its market position and revenue streams.

Conclusion:
Finolex Cables' exceptional performance in the Q4FY24 has propelled its shares to unprecedented heights, reflecting investor confidence in its growth prospects and financial strength. The company's ability to surpass market expectations in both profit and revenue underscores its resilience and market leadership in the electrical and telecommunications cable industry. As it continues to expand its product range and diversify its offerings, Finolex Cables remains well-positioned for sustained growth and value creation for its shareholders.

Also Read : Zaggle Prepaid Services Witnesses 7.5% Surge in Shares as Q4 Net Profit Doubles

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Finolex Cables Stock Skyrockets 19%, Achieves New Record High on Strong Q4 Performance

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