Finolex Cables

1QFY2011 Result Update | Power Cables
August 10, 2010

Finolex Cables BUY
CMP Rs58
Performance Highlights Target Price Rs85
Y/E March (Rs cr) 1QFY11 4QFY10 % chg (qoq) 1QFY10 % chg (yoy) Investment Period 12 Months
Net Sales 493.1 464.0 6.3 327.8 50.4
Stock Info
EBITDA 39.6 32.8 20.9 50.0 (20.7)
Sector Power Cables
EBITDA margin (%) 8.0 7.1 15.2
Market Cap (Rs cr) 891
PAT 23.0 (5.4) - 22.0 4.5
Beta 0.9
Source: Company, Angel Research
52 Week High / Low 71/36
Finolex Cables posted a strong 50.4% growth in top-line for 1QFY2011 to Avg. Daily Volume 181596
Rs493cr (Rs328cr), which exceeded our expectations. Sales growth was backed by Face Value (Rs) 2
robust performance registered by the electrical cables segment, which grew BSE Sensex 18,220
41.0% yoy during the quarter to Rs296cr (Rs210cr). However, OPM was muted at Nifty 5,461
8.0% (15.2%) though sequentially it improved by 97bp from 7.1% in 4QFY2010 Reuters Code FNXC.BO
to 8.0% in 1QFY2011. With strong growth in demand, we remain positive on the Bloomberg Code FNXC@IN
company. We maintain a Buy on the stock owing to attractive valuations.

Strong top-line growth, sluggish margins: 1QFY2011 sales increased with the Shareholding Pattern (%)
electrical cables segment recording strong growth. Copper rods and others Promoters 35.1
segments sales also surged, increasing 68.2% and 513.3% yoy, respectively. MF / Banks / Indian Fls 13.5
However, higher raw material costs hit OPM, which stood at 8.0% for 1QFY2011. FII / NRIs / OCBs 6.2
Indian Public / Others 45.1
Outlook and Valuation: Going ahead, we expect demand for low-tension (LT)
cables to remain strong given the positive outlook in the user industries. The EHV
and HT cables plants are expected to start contributing by FY2012E. We expect
Abs. (%) 3m 1yr 3yr
sales to log a CAGR of 23.2% over FY2010-12E to Rs2,458cr. However, OPM is
Sensex 5.1 21.4 22.5
expected to remain under pressure. Hence, we revise our OPM estimates from
Finolex Cables 11.2 53.7 (27.3)
10.2% to 10.0% in FY2011E and 10.4% to 10.2% in FY2012E. We expect PAT to
register a CAGR of 57.4%. At current levels, the stock is trading at 9.9x FY2011E
and 6.2x FY2012E EPS. Hence, we maintain a Buy on the stock, with a Target
Price of Rs85.

Key Financials
Y/E March (Rs cr) FY2009 FY2010 FY2011E FY2012E
Net Sales 1,342 1,619 2,048 2,458
% chg (3.1) 20.7 26.5 20.0
Net Profit (35) 58 90 143
% chg - - 56.2 58.5
EBITDA (%) 7.6 12.2 10.0 10.2
EPS (Rs) (2.3) 3.8 5.9 9.3
P/E (x) - 15.5 9.9 6.2
P/BV (x) 1.5 1.4 1.3 1.1
RoE (%) - 9.3 13.3 18.6
RoCE (%) 6.8 17.1 15.9 17.9
Jai Sharda
EV/Sales (x) 0.6 0.5 0.4 0.4
022 - 39524568 Ext 305
EV/EBITDA (x) 8.3 4.3 4.4 3.7 jai.sharda@angeltrade.com

Please refer to important disclosures at the end of this report 1

Finolex Cables | 1QFY2011 Result Update

Exhibit 1: 1QFY2011 Performance
Y/E March (Rs cr) 1QFY2011 4QFY2010 % chg (qoq) 1QFY2010 % chg (yoy) FY2010 FY2009 % chg
Net Sales 493.1 464.0 6.3 327.8 50.4 1,618.7 1,341.5 20.7
Consumption of RM 397.2 374.8 6.0 232.8 70.6 1,221.1 1,057.4 15.5
(% of Sales) 80.6 80.8 71.0 75.4 78.8
Staff Costs 15.6 13.1 19.2 15.7 (0.6) 59.2 53.3 11.1
(% of Sales) 3.2 2.8 4.8 3.7 4.0
Other Expenses 40.6 43.3 (6.1) 29.3 38.8 143.2 132.8 7.8
(% of Sales) 8.2 9.3 8.9 8.8 9.9
Total Expenditure 453.4 431.2 5.2 277.8 63.2 1,423.5 1,243.5 14.5
Operating Profit 39.6 32.8 20.9 50.0 (20.7) 195.2 98.1 99.1
OPM (%) 8.0 7.1 15.2 12.1 7.3
Interest 4.0 3.9 1.8 4.9 (18.7) 16.9 25.3 (33.2)
Depreciation 9.8 8.3 18.3 9.5 2.8 37.2 38.8 (3.9)
Other Income 5.9 4.9 19.1 10.8 (45.9) 24.1 23.8 1.2
PBT (excl. Extr. Items) 31.7 25.5 24.4 46.3 (31.6) 165.2 57.8 185.7
Extr. Income/(Expense) (3.6) (23.9) (19.0) (76.0) (87.9)
PBT (incl. Extr. Items) 28.1 1.5 1,713.5 27.4 2.7 89.2 (30.1) -
(% of Sales) 5.7 0.3 8.3 5.5 (2.2)
Provision for Taxation 5.1 6.9 (26.1) 5.4 (4.3) 31.5 5.4 483.0
(% of PBT) 18.2 447.7 19.6 35.4 (18.0)
Reported PAT 23.0 (5.4) - 22.0 4.5 57.6 (35.5) -
PATM(%) 4.7 (1.2) 6.7 3.6 (2.6)
Equity shares (cr) 15.3 15.3 15.3 15.3 15.3
EPS (Rs) 1.5 (0.4) - 1.4 4.5 3.8 (2.3) -
Adjusted PAT 26.6 18.6 43.2 41.0 (35.2) 133.7 52.4 155.0

Segment-wise performance

The electrical cables segment posted strong growth of 41.0% yoy to Rs296cr
(Rs210cr) mainly on the back of higher realisations. EBIT for the segment came in
at Rs36.2cr, implying EBIT margin of 12.2%, which fell 867bp yoy mainly owing to
higher raw material costs. However, sequentially EBIT margins increased by
288bp.

The communication cables segment registered a 20.4% yoy decline in sales to
Rs42.7cr (Rs53.7cr). Margins of the segment fell from 15.0% in 1QFY2010 to
8.1% in FY2011, with EBIT coming in at Rs3.5cr (Rs8.1cr).

The copper rods segment posted sales of Rs339cr (Rs201cr) and EBIT of Rs3.7cr
(Rs2.2cr). However, most of these sales were inter-segmental in nature. Margins of
the segment came in flat yoy, at 1.1%.

Sales of the others segment grew to Rs55.7cr (Rs9.1cr). A substantial portion of the
sales was inter-segmental. The segment recorded EBIT of Rs0.7cr in 1QFY2011,
vis-à-vis a loss of Rs0.6cr in 1QFY2010.

August 10, 2010 2


Exhibit 2: Segment-wise performance
Y/E March (Rs cr) 1QFY2010 4QFY2010 1QFY2011 % chg (qoq) % chg (yoy)
Total Revenues
A) Electrical Cables 210.2 263.0 296.4 12.7 41.0
B) Comm. Cables 53.7 86.0 42.7 (50.3) (20.4)
C) Copper Rods 201.4 266.8 338.7 27.0 68.2
D) Others 9.1 74.6 55.7 (25.4) 513.3
Total 474.3 690.3 733.6 6.3 54.7
Less: Inter-Seg. Rev 146.6 226.4 240.5 6.3 64.1
Net Sales 327.8 464.0 493.1 6.3 50.4
EBIT Margin (%)
A) Electrical Cables 20.9 9.3 12.2 288bp (867bp)
B) Comm. Cables 15.0 15.7 8.1 (757bp) (689bp)
C) Copper Rods 1.1 0.9 1.1 17bp 1bp
D) Others (6.3) 1.1 1.2 5bp 744bp

Sales on a strong growth curve

The company has recorded a consistent increase in top-line since 3QFY2009,
when it was hit by the global economic crisis. Since then, sales have more than
doubled, increasing from Rs238cr in 3QFY2009 to Rs493 in1QFY2011. In the
future too, the company looks to posting strong sales growth mainly on the back of
demand revival in the economy.

Exhibit 3: Sales trend

600 Sales (LHS) yoy Growth (RHS) 100.0
493
500 464 80.0
405 422
374 60.0
400 327 328
(Rs cr)

40.0

(%)
300 238
20.0
200
-
100 (20.0)
0 (40.0)
2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11


Margins under pressure, but stabilising

Post 3QFY2009, when the company posted losses at the operating level, margins
improved to 16.5% in 2QFY2010 on the back of low-cost inventory. However,
since then, margins have been declining and for 1QFY2011 came in at 8.1%
mainly on account of the company’s decision to not fully pass on the higher
copper prices. On a positive note, margins improved in 1QFY2011 sequentially.

August 10, 2010 3


Exhibit 4: Margins trend
80 EBITDA (LHS) OPM (RHS) 20
70
60 15
50
10
40

(Rs cr)

(%)
30
5
20
10 0
0
(10) (5)

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

Profit set to improve going ahead

The company’s PAT has been fluctuating in the past few quarters mainly on the
back of the erratic OPM and forex losses. In 1QFY2011, the company posted PAT
of Rs23cr. Going ahead PAT is expected to further rise with the company
improving its sales and forex losses tapering off.

Exhibit 5: Profit trend
40 29
30 22 23
20 12
10 2 3
0
(Rs cr)

(10)
(20) (5)
(30)
(40)
(50)
(60) (47)
2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11


Management call – Key takeaways
The electrical cables segment volumes grew by around 10.0% yoy, whereas
the communication cables segment volumes grew by around 5.0%. The
copper rods segment recorded a strong 24.0% increase in volumes.
Growth of the electrical cables segment was primarily driven by the high-
voltage and power cables.
Construction of one part of the EHV plant, the joint venture of the company
with J-Power Systems, may get a bit delayed. However, the venture is expected
to be in a position to offer most of its products as per schedule.
The high-tension (HT) cables plant has received all the major approvals and
started sales. However, volumes are currently subdued. Management expects
this plant to pick up in the coming months.

August 10, 2010 4


The company expects margins to improve in the ensuing quarters and targets
to end the fiscal with OPM of nearly 10.0%.

Investment Arguments

Poised for high growth going ahead: Finolex Cables is poised to register robust
growth over the next few years owing to strong growth in the existing LT cables
segment and entry into the HT and extra high voltage (EHV) cables verticals. In LT
cables, we expect the organised players to gradually gain market share as their
distribution reach expands and customers increasingly demand higher quality and
branded wires. Entry into the HT cables segment gives accessibility to the
generation and distribution segment, where the market opportunity is estimated at
Rs37,000cr over the next 10 years.

Tax benefits from Roorkee plant to help turnaround of the company: The company
has shifted a major chunk of production to its Roorkee plant, which avails excise
duty and income tax benefits. Owing to this, we expect excise duty and tax rates for
the company to remain low at 9% and 22.0% respectively, in FY2012E. The
company has further increased capacity of this plant by 50%. The proximity to the
growing north Indian markets and tax benefits availed by this plant are expected to
boost the turnaround of the company.

Major capex already undertaken: The company has already incurred the major
capex required to register growth over the next 4-5 years. Thus, on account of high
operating leverage and strong sales growth, we expect the company to increase its
net profit to Rs143cr in FY2012E from Rs58cr in FY2010.

Outlook and Valuation

We maintain our positive outlook on the company given its strong growth
prospects as demand from the user industries strengthens. The company’s entry
into the HT and EHV cables segments looks promising, with the HT cables plant
expected to start contributing to top-line earlier than we had anticipated. Going
ahead, with comfortable volumes, we expect the company to improve its margins
from current levels of 8.0% in the quarter.

Exhibit 6: Revised estimates
Rs cr Old New % chg
FY2011E FY2012E FY2011E FY2012E FY2011E FY2012E
Sales 1,994 2,398 2,048 2,458 2.8 2.5
EBITDA 203 250 206 250 1.3 0.1
EBITDA margin (%) 10.2 10.4 10.0 10.2
PAT 88 140 90 143 2.7 1.6
EPS (Rs) 5.7 9.2 5.9 9.3 3.3 1.4
Source: Angel Research

We expect sales to increase at a CAGR of 23.2% over FY2010-12E. However, we
expect OPM to remain at 10.0% in FY2011E and 10.2% in FY2012E. PAT is
expected to log a CAGR of 57.4% over FY2010-12E. We expect the company to
post EPS of Rs5.9 in FY2011E and Rs9.3 in FY2012E. At current levels, the stock is
trading at 9.9x and 6.2x FY2011E and FY2012E EPS, respectively. We maintain a
Buy on the stock with a target price of Rs85.

August 10, 2010 5


Exhibit 7: Key Assumptions
FY2011E FY2012E Remarks
Electrical cables contribution to sales (%) 66.6 68.6 Higher contribution owing to HT cables sales
Communication cables contribution to sales (%) 8.7 7.7 Decline mainly on account of lacklustre demand in JFTC
Copper rods contribution to sales (%) 19.9 18.2 Sales to be driven by improvement in the economy
Others contribution to sales (%) 4.9 5.5 CFL and switches to lead sales
OPM (%) 10.0 10.2 OPM to remain under pressure owing to high copper prices
Tax Rate (%) 20.0 22.0 Higher production in Pune plant to result in higher tax
Source: Angel Research

Exhibit 8: Peer Valuation
Company Mcap CMP EPS (Rs) P/E (x) P/BV (x) RoE (%)
(Rs cr) (Rs) FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E
Finolex Cables 891 58 5.9 9.3 9.9 6.2 1.3 1.1 13.3 18.6
Sterlite Technologies 3649 103 8.2 9.4 12.5 10.9 3.3 2.6 27.2 25.3
Source: Company, Bloomberg, Angel Research

Exhibit 9: One-year forward P/BV band
140
2.5x
120

100 2.0x
Share Price (Rs)

80 1.5x

60
1.0x
40
0.5x
20

0
Jul-02

Jul-03

Jul-04

Jul-05

Jul-06

Jul-07

Jul-08

Jul-09

Jul-10
Mar-02

Mar-03

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10
Nov-02

Nov-03

Nov-04

Nov-05

Nov-06

Nov-07

Nov-08

Nov-09

Source: Company, Bloomberg, Angel Research

August 10, 2010 6


Profit and Loss Statement
Y/E March (Rs cr) FY07 FY08 FY09 FY10 FY11E FY12E
Gross sales 1,185.9 1,592.9 1,501.5 1,726.6 2,202.5 2,701.5
Less: Excise duty 152.9 209.1 160.0 107.9 154.2 243.1
Net Sales 1,033.0 1,383.8 1,341.5 1,618.7 2,048.4 2,458.3
Other operating income
Total operating income 1,033.0 1,383.8 1,341.5 1,618.7 2,048.4 2,458.3
% chg 38.1 34.0 (3.1) 20.7 26.5 20.0
Total Expenditure 912.8 1,237.9 1,239.7 1,421.7 1,842.7 2,208.4
Net Raw Materials 783.0 1,074.0 1,058.5 1,221.1 1,602.4 1,922.4
Other Mfg costs 19.7 23.6 24.4 28.4 33.7 40.5
Personnel 35.5 49.7 53.3 59.2 75.8 91.0
Other 74.6 90.5 103.5 113.1 130.8 154.5
EBITDA 120.2 145.9 101.8 197.0 205.7 250.0
% chg 39.8 21.4 (30.2) 93.5 4.4 21.5
(% of Net Sales) 11.6 10.5 7.6 12.2 10.0 10.2
Depreciation& Amortisation 26.4 26.5 38.8 37.2 45.3 46.9
EBIT 93.8 119.4 63.0 159.8 160.3 203.1
% chg 71.5 27.4 (47.2) 153.5 0.4 26.7
(% of Net Sales) 9.1 8.6 4.7 9.9 7.8 8.3
Interest & other Charges 15.9 20.4 32.4 18.7 22.8 24.2
Other Income 19.6 34.1 51.0 24.1 24.1 28.6
(% of PBT) 20.1 25.6 62.5 14.6 14.9 13.8
Share in profit of Associates - - - - - -
Recurring PBT 97.4 133.2 81.6 165.2 161.7 207.5
% chg 38.6 36.7 (38.7) 102.5 (2.1) 28.4
Extraordinary Expense/(Inc.) 0.4 12.9 111.7 76.0 49.2 24.6
PBT (reported) 97.0 120.3 (30.1) 89.2 112.5 183.0
Tax 28.0 31.4 5.4 31.5 22.5 40.3
(% of PBT) 28.9 26.1 - 35.4 20.0 22.0
PAT (reported) 69.0 88.9 (35.5) 57.6 90.0 142.7
Less: Minority interest (MI) - - - - - -
Prior period items - - - - - -
PAT after MI (reported) 69.0 88.9 (35.5) 57.6 90.0 142.7
ADJ. PAT 69.0 88.9 (35.5) 57.6 90.0 142.7
% chg 37.0 28.9 - - 56.2 58.5
(% of Net Sales) 6.7 6.4 - - 4.4 5.8
Basic EPS (Rs) 4.5 5.8 (2.3) 3.8 5.9 9.3
Fully Diluted EPS (Rs) 4.5 5.8 (2.3) 3.8 5.9 9.3
% chg 37.0 28.9 - - 56.2 58.5

August 10, 2010 7


Balance Sheet
SOURCES OF FUNDS
Equity Share Capital 30.6 30.6 30.6 30.6 30.6 30.6
Preference Capital - - - - - -
Reserves& Surplus 549.5 610.9 565.6 612.5 681.1 795.1
Shareholders Funds 580.1 641.5 596.2 643.1 711.7 825.7
Minority Interest - - - - - -
Total Loans 265.3 287.6 295.9 275.1 325.1 345.1
Deferred Tax Liability 20.8 17.5 22.1 31.9 31.9 31.9
Total Liabilities 866.2 946.6 914.2 950.1 1,068.7 1,202.8
APPLICATION OF FUNDS
Gross Block 475.5 504.4 762.1 802.5 871.6 910.5
Less: Acc. Depreciation 272.7 298.9 346.5 383.7 429.0 475.9
Net Block 202.8 205.5 415.6 418.8 442.6 434.6
Capital Work-in-Progress 105.1 172.9 40.1 28.8 34.9 45.5
Goodwill - - - - - -
Investments 283.3 316.8 314.1 280.3 290.3 290.3
Current Assets 659.4 447.3 315.8 414.9 548.5 731.8
Cash 61.1 21.4 28.1 37.2 21.5 31.4
Loans & Advances 327.2 82.3 86.4 85.7 131.9 158.3
Inventories 192.3 236.1 143.6 220.9 292.6 378.2
Debtors 78.8 107.6 57.7 71.0 102.4 163.9
Other 0.0 0.0 - - - -
Current liabilities 384.4 195.9 171.4 192.6 247.5 299.4
Net Current Assets 275.0 251.4 144.4 222.3 300.9 432.4
Mis. Exp. not written off - - - - - -
Total Assets 866.2 946.6 914.2 950.1 1,068.7 1,202.8

August 10, 2010 8


Cash Flow Statement
Profit before tax 97.0 120.3 (30.1) 89.2 112.5 183.0
Depreciation 26.4 26.5 38.8 37.2 45.3 46.9
(Inc.)/ Dec. in Working Cap. 49.7 (262.7) 141.1 (80.5) (59.6) (103.2)
Less: Other income 19.6 34.1 51.0 24.1 24.1 28.6
Direct taxes paid 28.0 31.4 5.4 31.5 22.5 40.3
Cash Flow from Operations 125.5 (181.5) 93.4 (9.8) 51.6 57.8
(Inc.)/ Dec. in Fixed Assets (105.3) (96.6) (124.9) (29.1) (75.2) (49.5)
(Inc.)/ Dec. in Investments (11.1) (33.5) 2.7 33.8 (10.0) -
(Inc.)/ Dec. in loans and adv. (36.2) 244.9 (4.1) 0.7 (46.2) (26.4)
Other income 19.6 34.1 51.0 24.1 24.1 28.6
Cash Flow from Investing (133.0) 148.9 (75.3) 29.5 (107.3) (47.3)
Issue of Equity - - - - - -
Inc./(Dec.) in loans 31.0 22.3 8.3 (20.7) 50.0 20.0
Dividend Paid (Incl. Tax) 25.1 26.8 3.6 10.7 21.5 28.6
Others 3.4 (2.5) (16.0) 20.78 11.48 8.04
Cash Flow from Financing 9.3 (7.1) (11.4) (10.7) 40.0 (0.6)
Inc./(Dec.) in Cash 1.8 (39.7) 6.7 9.0 (15.7) 9.9
Opening Cash balances 59.2 61.1 21.4 28.1 37.2 21.5
Closing Cash balances 61.1 21.4 28.1 37.2 21.5 31.4

August 10, 2010 9


Key Ratios
Y/E March FY07 FY08 FY09 FY10 FY11E FY12E
Valuation Ratio (x)
P/E (on FDEPS) 12.9 10.0 - 15.5 9.9 6.2
P/E (on basic, reported EPS) 12.9 10.0 - 15.5 9.9 6.2
P/CEPS 9.3 7.7 272.2 9.4 6.6 4.7
P/BV 1.5 1.4 1.5 1.4 1.3 1.1
Dividend yield (%) 2.4 2.6 0.3 1.0 2.1 2.7
Market cap. / Sales 0.9 0.6 0.7 0.6 0.4 0.4
EV/Sales 0.8 0.6 0.6 0.5 0.4 0.4
EV/EBITDA 6.8 5.8 8.3 4.3 4.4 3.7
EV / Total Assets 0.9 0.9 0.9 0.9 0.8 0.8
Per Share Data (Rs)
EPS (Basic) 4.5 5.8 (2.3) 3.8 5.9 9.3
EPS (fully diluted) 4.5 5.8 (2.3) 3.8 5.9 9.3
Cash EPS 6.2 7.5 0.2 6.2 8.8 12.4
DPS 1.4 1.5 0.2 0.6 1.2 1.6
Book Value 37.9 41.9 39.0 42.0 46.5 54.0
ROE Decomposition (%)
EBIT margin 9.1 8.6 4.7 9.9 7.8 8.3
Tax retention ratio 71.1 73.9 118.0 64.6 80.0 78.0
Asset turnover (x) 2.4 3.2 2.8 2.9 3.1 3.2
ROCE (Post Tax) 15.3 20.7 15.4 18.2 19.3 20.3
Cost of Debt (Post Tax) 4.5 5.5 13.1 4.2 6.1 5.6
Leverage (x) 0.1 0.2 0.2 0.2 0.3 0.3
Operating ROE 16.7 23.1 15.9 21.4 22.9 24.4
Returns (%)
ROCE (Pre-tax) 11.3 13.2 6.8 17.1 15.9 17.9
Angel ROIC 15.3 20.7 15.4 18.2 19.3 20.3
ROE 12.4 14.6 (5.7) 9.3 13.3 18.6
Turnover ratios (x)
Asset Turnover (Gross Block) 2.2 2.8 2.1 2.1 2.4 2.8
Asset Turnover (Net Block) 4.8 6.8 4.3 3.9 4.8 5.6
Operating Income / Invested
2.4 3.2 2.8 2.9 3.1 3.2
Capital
Inventory / Sales (days) 70.8 56.5 51.7 41.1 45.8 49.8
Receivables (days) 27.3 24.6 22.5 14.5 15.5 19.8
Payables (days) 38.9 39.5 48.5 43.8 39.6 40.2
WC cycle (ex-cash) (days) 78.7 78.4 45.7 41.0 52.4 60.6
Solvency ratios (x)
Gross debt to equity 0.5 0.4 0.5 0.4 0.5 0.4
Net debt to equity 0.1 0.2 0.2 0.2 0.3 0.3
Net debt to EBITDA 0.7 0.8 1.4 0.8 1.1 0.9
Interest Coverage (EBIT /
5.9 5.8 1.9 8.5 7.0 8.4
Interest)

August 10, 2010 10


Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com

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compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.

Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
the past.

Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please
refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and
its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement Finolex Cables
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No

Note: We have not considered any Exposure below Rs 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) : Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)

August 10, 2010 11

Finolex Cables

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