Finolex Cables (FNXC) Shares Skyrocket 14% to Record High Amid Stellar Q4 Earnings Report

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    <li>Shares of Finolex Cables surged over 14 percent in intra-day deals on Friday to its record high of ₹1,308.25 after the company posted better-than-expected results for the quarter ended March 2024 (Q4FY24).</li>
    <li>The firm posted a 6.3 percent year-on-year (YoY) increase in its consolidated net profit at ₹186.1 crore for the fourth quarter of FY24 as against ₹175 crore in the same period last year. On a sequential basis, the profit jumped over 23 percent from ₹151 crore in the previous quarter.</li>
    <li>Its revenue from operations increased 18.3 percent to ₹1,450.69 crore in Q4FY24 versus ₹1,226.14 crore in the corresponding period of the preceding fiscal.</li>
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<p><strong>Finolex Cables shares surge to a new high on strong Q4 results; company announces dividend.</strong></p>
<h2><strong>Finolex Cables Posts Robust Q4FY24 Results</strong></h2>
<p>Finolex Cables has reported a significant increase in its financial performance for the fourth quarter of FY24. The company's consolidated net profit rose by 6.3 percent year-on-year to ₹186.1 crore, compared to ₹175 crore in the same period last year. Sequentially, the profit saw an impressive jump of over 23 percent from ₹151 crore in the previous quarter.</p>
<h3><strong>Revenue Growth and Stock Performance</strong></h3>
<p>The company's revenue from operations also saw a substantial increase, rising 18.3 percent to ₹1,450.69 crore in Q4FY24, up from ₹1,226.14 crore in the corresponding period of the previous fiscal. This strong financial performance has positively impacted the stock, which surged as much as 14.3 percent to a new high of ₹1,308.25 in intra-day deals. The stock has now soared over 69 percent from its 52-week low of ₹772.30, hit on June 6, 2023. It has advanced 33 percent in the last year and over 22 percent in 2024 year-to-date.</p>
<h3><strong>Monthly Performance and Dividend Announcement</strong></h3>
<p>In May, Finolex Cables' stock surged 22 percent, extending gains for the third straight month. It rose 5.2 percent in April and 8.7 percent in March, although it fell 15.6 percent in February. In January 2024, the stock was up 2 percent. At the operating level, EBITDA rose 11.2 percent to ₹162 crore in the quarter under review from ₹145.7 crore in the year-ago period. The EBITDA margin came in at 11.6 percent in the reporting quarter, compared to 11.9 percent last year. Moreover, the board has recommended a dividend of ₹8 per equity share of ₹2 each fully paid up (400 percent) for the financial year ending March 31, 2024, subject to the approval of shareholders at the ensuing annual general meeting of the company.</p>
<h3><strong>Annual Performance and Future Outlook</strong></h3>
<p>Overall, for the financial year 2023-24 (FY24), the company's net profit grew 14 percent to ₹571.60 crore from ₹501.74 crore in FY23. Meanwhile, its total income from operations rose 12 percent to ₹5,232.44 crore from ₹4,679.24 crore in FY23. The strong financial performance and positive stock movement indicate a promising future outlook for Finolex Cables, as the company continues to deliver robust results and reward its shareholders with dividends.</p>
<h3><strong>Conclusion</strong></h3>
<p>Finolex Cables has demonstrated strong financial performance in Q4FY24, with significant increases in net profit and revenue from operations. The stock's impressive surge to a new high reflects investor confidence in the company's growth prospects. With a recommended dividend and positive annual performance, Finolex Cables is well-positioned for continued success in the coming fiscal year.</p>