The revenue from operations was ₹659.2 crore in Q2 FY21 as against ₹740.3 crore, which declined by 11.0% YoY.
During the quarter, the net profit de-grew by 19.2% YoY to ₹102.4 crore v/s ₹126.8 crore in Q2 FY20.
The operating EBITDA was ₹102 crore during the quarter, which declined by 32% YoY.
There had been an increase in non-operating income on account of dividends from Finolex Industries
The company witnessed a growth in wire segment for housing and the demand had reached pre- Covid levels in September, 2020. There had been a good demand traction from communications segment of land cables and small fibre count for computer networking on account of rise in work-from home, while the power cables segment demand had remained subdued during the quarter.
It plans to expand its distribution retailers from 50,000 to 1,50,000 by the end of the year, with an initial distribution target of 500 outlets. Out of this, distribution target of 488 outlets had been reached covering 1,10,000 retailers during the year. The unique billing number stood at 50,000.
The electrical cables contribute more than 80% towards its revenue, communications segment contribute 15% and 5% revenue is generated from other segments.
During the quarter, the revenue from electrical segment stood at ₹538.7 crore, which declined by 8.4% YoY. It had a demand registered with Research Design and Standard Organisations (RDSO) under Ministry of Railways.
The communication cables segment witnessed a decline in revenue by 32.9% YoY to ₹71 crore in Q2 FY21. The decline in the fibre to the home segment (FTTH) was on account of less expansion of telecommunications companies over alternative dispute resolutions (ADR), slow tender approvals from Government and decline in the price of fibre cables from $6 to $3.
The other segments which comprised of fans, water heaters, lamps, switches, etc. had a revenue of
₹24.1 crore in Q2 FY21 which grew by 48.8% YoY.
The residential segments performed better than the commercial segments in Q2, with demand from real estate sector remaining weak. There had been new launches in southern region.
The days of receivables reduced by 10 days in Q2 as against the last quarter
The capex plan for the year is ₹200 crore with a time horizon of 18-24 months. The major spending
has been towards its ongoing projects in Goa for electrical conduits for which it is awaiting the technical assistance from overseas to start its commissioning, Pune-solar cables for electron beam accelerators and for backend integration in installing a new line to make tinned copper and foray into instrumentation cables.
The demand volumes had improved across all product categories, but had not reached the corresponding year’s demand levels.
The company increased its spending towards advertising during the quarter.
The company expects to achieve 15% revenue at ₹150 crore in three years from its new product
The tenders from Governments for connecting optical fibers in gram panchayats would be released in upcoming quarters