Finolex Industries gains 3% over solid increase in net profit for Q1FY24

At 12:30 pm, the stock was quoting at Rs 186 apiece, up by Rs 5.15, or 2.89 percent on the NSE.

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Finolex Industries Limited shares were up by 3 percent on July 20 after the company reported a 16.2 percent increase YoY (year-on-year) in its net profit at Rs 115.3 crore against Rs 99 crore reported in Q1FY23.

At 12:30 pm, the stock was quoting at Rs 186 apiece, up by Rs 5.15, or 2.89 percent on the NSE.

The company’s revenue from operations for the quarter fell by 0.9 percent YoY at Rs 1179.2 crores as compared to Rs 1189.8 crore in Q1FY23. Sequentially, the revenue grew by 3.34 percent against Rs 1141.06 crore reported in Q4FY23.

EBITDA (earnings-before-interest-taxes-depreciation and ammortisation) margins stood at 12.9 percent in the quarter under review, up by 230 basis points from 10.6 percent in Q1FY23.

The decline in revenue, as stated by the investor presentation, was an outcome of correction in the prices of PVC pipes which contributes nearly 75 percent to its earnings.

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“Overall economic recovery in both the rural and the urban segments has led to a strong demand which in turn, is driving volume growth in pipes and fittings segment” said Prakash P Chhabria, Executive Chairman, Finolex Industries Limited. He added that a robust domestic consumption led growth which is aiding the Indian economy will also benefit the industry.

Finolex Industries Limited is primarily engaged in the manufacturing of PVC (poly-vinyl-chloride) resins, PVC pipes and accessories in India. Its products are used in the domain of agriculture, construction and industrial operations. As per the current market capitalisation, it is the third-largest PVC player in the country and accounts for almost 17 percent of market share by capacity.

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