Finolex Industries Limited (NSE:FINPIPE|BSE:500940) announced its unaudited financial results for the second quarter ending September 30, 2023. The results reveal significant YOY profit improvement driven by enhanced operating matrices, with a particular focus on the PVC segment.
Empowering Growth – Q2 FY24 Highlights
- Total income from operations was Rs 883.15 Cr for Q2FY24, a 6.16% decrease from Rs 941.13 Cr in Q2FY23.
- The Pipes & Fittings segment recorded a notable increase of 6.24% in volume, reaching 62,914 MT in Q2FY24 compared to 59,218 MT in Q2FY23.
- Conversely, the PVC Resin segment witnessed a 30.61% volume decrease to 37,516 MT in Q2FY24 against 54,063 MT in Q2FY23.
- EBITDA for Q2FY24 stood at Rs 102.98 Cr, a substantial recovery from the EBITDA loss of Rs 142.67 Cr in Q2FY23.
- Profit after tax (PAT) for Q2FY24 showed a significant turnaround, reaching 93.78 Cr compared to a loss of Rs 93.92 Cr in Q2FY23.
Looking Ahead – H2 FY24 Highlights
- Total income from operations for H1FY24 was Rs 2,062.32 Cr, down 3.22% from Rs 2,130.94 Cr in H1FY23.
- The Pipes & Fittings segment experienced significant growth, with a volume increase of 18.23% to 1,55,095 MT in H1FY23, compared to 1,31,178 MT in H1FY23.
- In contrast, the Resin segment observed a 28.44% volume decrease to 83,590 MT in H1FY24 against 1,16,809 MT in H1FY23.
- EBITDA for H1FY24 reached Rs 255.45 Cr, marking a substantial recovery from the EBITDA loss of Rs 16.76 Cr in H1FY23.
- PAT for H1FY24 demonstrated a remarkable surge, reaching Rs 204.66 Cr compared to Rs 6.17 Cr in H1FY23.
Prakash P. Chhabria, Executive Chairman of Finolex Industries Limited, expressed his observations on the quarterly results. He commented, “The pipes and fittings segment which plays an important role in contributing to economic growth has been growing strong on a year-on-year basis. The global PVC prices are near historic lows, which might bolster pipes and fittings demand once prices stabilize.”
Key Financial Highlights (Standalone): (INR- Cr)
| Rs. In Crores | Q2 FY24 | Q2 FY23 | % Change | H1 FY24 | H1 FY23 | % Change |
| Total Income from operations | 883.15 | 941.13 | (6.16%) | 2,062.32 | 2,130.94 | (3.22%) |
| EBITDA gain/(loss) | 102.98 | (142.67) | NA | 255.45 | (16.76) | NA |
| EBITDA % | 11.66% | (15.16%) | 12.39% | (0.79%) | ||
| Depreciation | 27.38 | 21.56 | 61.77 | 42.90 | ||
| Profit/ (loss) before interest & tax | 75.60 | (164.23) | NA | 193.68 | (59.66) | NA |
| EBIT % | 8.56% | (17.45%) | 9.39% | (2.80%) | ||
| Finance costs | 12.46 | 4.31 | 21.48 | 15.64 | ||
| Other Income | 62.51 | 39.29 | 102.77 | 64.36 | ||
| Profit/(loss) before tax | 125.65 | (129.25) | NA | 274.97 | (10.94) | NA |
| PBT % | 14.23% | (13.73%) | 13.33% | (0.51%) | ||
| Tax | 31.87 | (35.33) | 70.31 | (17.11) | ||
| Profit/(loss) after tax | 93.78 | (93.92) | NA | 204.66 | 6.17 | NA |
| PAT % | 10.62% | (9.98%) | 9.92% | 0.29% |
Sales volume in MT
| PVC Resin (External) | 2,546 | 14,495 | (82.43%) | 5,025 | 18,713 | (73.15%) |
| PVC Resin (Including inter Segment) | 37,516 | 54,063 | (30.61%) | 83,590 | 1,16,809 | (28.44%) |
| Pipes and Fittings | 62,914 | 59,218 | 6.24% | 1,55,095 | 1,31,178 | 18.23% |
About Finolex Industries Limited
As India’s most trusted PVC pipes and fittings manufacturer, Finolex Industries Limited has left an indelible mark on the sanitation-plumbing and agricultural sectors over the past 40 years. Their dedication to quality, from sourcing raw materials and resin production to manufacturing, storage, transport, and beyond, reflects their commitment to delivering superior pipes and fittings.
