Why Did Dynamic Cables’ Q1 Net Profit Decline by 22.75% to Rs 18.2 Crore?
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Synopsis
Dynamic Cables Limited, based in Jaipur, has reported a troubling financial performance for Q1 FY26, with a notable drop in net profit and revenue. Despite these setbacks, the company maintains a robust order book and optimistic outlook for future growth driven by strong demand in various sectors. What does this mean for their stakeholders?
Key Takeaways
- Net profit fell by 22.75% to Rs 18.2 crore.
- Revenue from operations dropped by 20.88%.
- Order book increased to Rs 734 crore.
- Strong demand in power utilities, EPC, and renewable energy.
- Optimistic outlook for future growth.
Mumbai, July 23 (NationPress) Jaipur-based Dynamic Cables Limited announced a downturn in its financial results for the first quarter (Q1) of FY26, revealing a net profit drop of 22.75% quarter-on-quarter (QoQ) to Rs 18.2 crore, down from Rs 23.56 crore in the previous quarter (Q4 FY25).
The company's revenue from operations also experienced a significant decline of 20.88%, totaling Rs 262.03 crore in Q1, a decrease from Rs 331.17 crore in Q4 FY25, as noted in their stock exchange announcement.
The overall income for the quarter amounted to Rs 264.77 crore, marking a 20.39% decrease QoQ.
On the expense front, the company reported total expenses of Rs 240.4 crore in Q1, which is a 20.37% reduction from Rs 301.9 crore in the previous quarter, as indicated in its regulatory filing.
Total expenses included Rs 233.3 crore for materials consumed, Rs 10.01 crore for employee benefits, Rs 2.66 crore in finance costs, Rs 2.65 crore in depreciation and amortization, and Rs 13.82 crore for other costs.
As of June 30, Dynamic Cables’ order book reached approximately Rs 734 crore, significantly increasing from Rs 468 crore a year prior.
The company attributed this growth to robust demand in the power utilities/EPC, export, and renewable energy sectors.
Managing Director Ashish Mangal noted that the uptick was primarily driven by strong domestic demand from government and private sector projects in power distribution and renewable energy, alongside consistent export contributions of around 10%, despite geopolitical challenges.
He expressed optimism for future quarters, stating that the company is well-positioned to take advantage of growth opportunities due to supportive policies and heightened infrastructure investments.
“With a solid order book, a clear growth strategy, and a strong focus on execution, we are confident in our ability to sustain this momentum and generate long-term value for all stakeholders,” Mangal emphasized.
Dynamic Cables Limited manufactures a diverse array of power infrastructure cables, including low voltage, medium voltage, high voltage, control, instrumentation, and signaling cables.
The company supplies to government discoms, private utilities, EPC contractors, industrial clients, and international markets.
Operating three manufacturing units in Jaipur and Reengus, Dynamic Cables has its corporate office and five regional sales offices distributed across India.
Point of View
It is crucial to recognize the implications of Dynamic Cables Limited's financial decline. While the drop in profit signals immediate challenges, the company's strong order book and optimistic outlook suggest a potential for recovery. Stakeholders should monitor future developments closely to gauge the effectiveness of management's strategies in navigating these turbulent times.
NationPress
23/07/2025
Frequently Asked Questions
What caused the decline in Dynamic Cables’ net profit?
The decline in net profit by 22.75% was primarily due to a significant drop in revenue from operations, which fell by 20.88% compared to the previous quarter.
How much is Dynamic Cables’ current order book?
As of June 30, Dynamic Cables' order book is approximately Rs 734 crore, a substantial increase from Rs 468 crore a year ago.
What are the main sectors driving Dynamic Cables’ growth?
The company is experiencing growth driven by strong demand in the power utilities/EPC, export, and renewable energy sectors.
What is the company’s outlook for the upcoming quarters?
The Managing Director expressed optimism, citing supportive policies and increased infrastructure investments as key factors for future growth.
What types of cables does Dynamic Cables manufacture?
Dynamic Cables manufactures a diverse range of power infrastructure cables including low, medium, and high voltage cables, as well as control and instrumentation cables.
