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Shilpi Cable Q2 profit shrinks 33 pc to Rs 27 cr

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Press Trust of India Mumbai
Last Updated : Nov 09 2015 | 3:28 PM IST
Cable manufacturer Shilpi Cable Technologies (SCTL) today reported a 33.39 per cent decline in consolidated net profit at Rs 26.74 crore for the quarter ended September.
Its net profit for the same quarter of the last fiscal stood at Rs 40.15 crore.
Its consolidated total revenues for July-September jumped 10.27 per cent to Rs 822.35 crore as against Rs 745.77 crore a year earlier.
"We have made a significant progress in the domestic business across business verticals and hence, on a stand-alone basis, our total revenues have jumped by 33.2 per cent to Rs 416.02 crore during the quarter," MD Manish Goel told PTI.
However, the overseas business took a knock in the copper wire conductor segment, which contributes nearly 70 per cent of international revenues.
"As a result, on the consolidated basis, revenues grew only 10.27 per cent, which reflected on the profits. We want to reduce our dependence on the copper wire business in the international market and expand our telecom and other businesses there simultaneously," he said.

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The company recently entered into a 50:50 JV with the New Zealand-based Eyecom Telecommunications Equipments, marking its foray in the next generation technology of radio frequency (RF).
"We have seen an increase in investments in the telecom sector. With this strategic partnership, we aim to capture at least 30 per cent market share in the RF path solution market over the next three years. We also expect profits to increase significantly after the tie-up," Goel said.
Shilpi Cables also has plans to seal more JVs in the next few years.
"We are planning to introduce new products in our basket for B2C segment. Also, we plan to invest Rs 50 crore in expansion of our production capacity. We will also invest Rs 5-10 crore in the next generation technology of radio frequency (RF)," he added.
Shilpi Cable Technologies' 23 per cent revenue comes from the telecom segment, 21 per cent from automotive, 10 per cent from the consumer durables/assemblies, 12 per cent from energy cables, and the rest 34 per cent from copper wire conductor business.

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First Published: Nov 09 2015 | 3:28 PM IST

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