Finolex Cables Ltd

The transcript from Finolex Cables Limited’s November 14, 2025, call does not mention any current or planned fundraising through debt or equity. Key points: - No reference to new debt or equity fundraising initiatives. - CAPEX plans include INR 75-100 crores spent on preform plant and fiber draw plant, funded through internal resources. - No guidance or announcements related to capital raising in the near term. - Management focuses on operational efficiencies and capacity utilization rather than fresh funding. - No explicit mention of any discussions or plans for future fundraising during the call or Q&A. In summary, based on the provided document, there are no indications of current or upcoming fundraising through debt or equity at Finolex Cables Limited.

- Finolex Cables has ongoing capital expenditure primarily focused on the preform plant and fiber draw plant. - The preform plant is ready and awaiting production trials, expected to start soon. - The fiber draw plant building is nearing completion with machines expected imminently; full completion targeted by March 2026. - Total capex spent recently: INR 75 crores in the quarter and INR 100 crores in the half-year. - Investments aim to enhance in-house manufacturing, reduce import duty costs (e.g., savings from not importing preforms from the U.S.), and improve margins. - Other strategic investments include developing new designs and product variants in FMEG (fans, water heaters, lighting, switches, and domestic switchgear) with plans for new product launches in upcoming quarters. - In-house manufacturing for the FMEG segment remains on the card but is dependent on hitting volumes and is not expected this year.

- Electrical cables segment has capacity for revenues of approximately INR 6,500 crores at peak utilization; current utilization is just under 70%, indicating room for growth. - Communication cable segment growth depends on fiber count and design; low fiber count products yield lower revenue per km, higher fiber count products yield much higher revenue. - Communication segment margins currently low single digits, expected to improve to 8-10% post stabilization of new preform plant and fiber draw units. - FMEG segment (fans, water heaters, lighting, switches, switchgear) is under product development; target of INR 500 crores revenue by 2028 remains on track. - Impact of macro factors: Housing demand currently moderate due to market conditions; infrastructure demand strong but tender-driven and selective participation planned. - Volume growth seen in industrial cables and solar applications; auto segment poised for future growth. - New product launches and design improvements planned across segments to support growth.

- Finolex Cables expects modest revenue growth driven by improving utilization and new product launches, particularly in electrical and communication cables segments. - Current communication cable margins are low single digits; the new in-house preform facility should improve margins to traditional levels (~8-10%) after stabilization. - The FMEG segment aims to reach INR 500 crores revenue by 2028 but volume targets must be achieved first; no in-house manufacturing expected this year. - EBITDA and PAT have shown growth in recent quarters (Q2 FY26 EBITDA +26%, PAT +35% YoY), indicating potential for continued earnings improvement. - No formal guidance on earnings or EPS is provided due to market uncertainties. - Volume growth may be tempered by slow real estate and monsoon effects, while infrastructure demand presents opportunities. - Overall, management expects margin accretion and improved operating profits as new capacities stabilize and market conditions improve.

- BharatNet Phase 3: No meaningful orders received yet; participated but not successful in initial 16 tenders (12 awarded, 4 retendering). - Retender expected around September; ongoing discussions with awarded suppliers lacking cabling/fiber capacity for possible collaboration. - State tenders outside BSNL: Only Gujarat floated tenders so far; seven other states expected to float tenders in next 2-4 months. - Optimistic about gaining positions in upcoming state tenders. - Current factory bookings around 60% capacity for private telecom contracts (Bharti, Reliance, Vodafone). - Utilization for electrical cables is slightly under 70%. - Order pipeline in the communication segment largely depends on government and state tenders expected soon.