Finolex Cables shares jumped nearly 12 percent in Tuesday afternoon trade after the company reported strong growth in its fiscal first quarter earnings, with net profit rising 53 percent and operating profit surging 79 percent year-on-year, riding on higher sales.

Finolex Cables stock was trading at Rs 1,181.5, up 11.7 percent for the day, making it one of the top smallcap gainers. The sharp rally took the stock's year-to-date gain to 50.4 percent, compared with a 6.5 percent decline in the Nifty 50 over the same period.

For the April-June quarter, Finolex Cables reported a net profit of Rs 249 crore, up 53 percent from Rs 162.6 crore in the corresponding quarter of the previous year. Revenue rose 44.3 percent year-on-year to Rs 2,013.2 crore from Rs 1,395.5 crore.

Operating performance improved at a faster pace, with earnings before interest, tax, depreciation and amortisation (EBITDA) jumping 79 percent to Rs 244.2 crore from Rs 136.3 crore a year earlier. The EBITDA margin expanded to 12.13 percent during the quarter from 9.77 percent in the year-ago period, an improvement of 236 basis points.

The strong Q1 performance triggered a sharp reaction in Finolex Cables shares on Tuesday, adding to the stock's substantial gains so far this year. The company had a market capitalisation of around Rs 18,000 crore at the prevailing share price.

The company said revenue growth during the quarter was supported by higher volumes across key segments. Electrical wires volumes rose 7 percent, with strong contributions from agricultural, industrial and solar applications.

In the communication cables segment, optic fibre cable volumes were significantly higher than a year earlier. Finolex Cables said higher realisations also helped margins in the segment.

However, the company's copper rod plant was not operated during the quarter due to very limited availability of LPG and PNG amid the war in the Middle East. The resulting fuel constraints also affected volumes in the new product categories.

Copper prices remained elevated during the quarter, prompting the company to increase selling prices in May.

Finolex Cables also said the expansion of its fibre draw facility remains on track. Full capacity from the new plant, with a capacity of 4 million fibre kilometres, is expected to come on stream by the third quarter of the current fiscal year.