Finolex Industries’ Q2 FY-24 Results: Revenue Drops 6.16% YoY

October 27, 2023November 10, 2023 Mohd Saroon 214 Views Compounds, Conduits, Financials, Finolex Industries, PVC Pipes, Resins

Finolex Industries Limited [NSE: FINPIPE, BOM: 500940], an Indian manufacturer of PVC pipes and fittings has announced its financial results for the quarter ended 30th September 2023.

Finolex Industries’ Standalone Financial Performance During Q2 FY-24

For Q2 FY-24, Finolex Industries’ revenue from operations stood at Rs. 883.15 crore.

Finolex Industries’ standalone Profit after Tax (PAT) for Q2 of FY-24 was recorded as Rs. 93.78 crore.

Earnings per Share (EPS) of the company stood at Rs. 1.52 during Q2 of the ongoing financial year.

Finolex Industries’ Consolidated Q2 FY-24 Financial Results

YoY Comparison of Finolex Ind.’s Financials: Q2 FY-24 vs. Q2 FY-23

Comparison of Finolex Industries Financials: Q2 FY23 vs. Q2 FY24 vs. Q1 FY24

Finolex Industries reported Rs. 883.15 crore as its revenue from operations for the quarter ended Q2 of FY-24. This shows a Year-over-Year (YoY) drop of 6.16% in revenue from the company’s Rs. 941.13 crore top line logged during Q2 of FY-23.

Further, Finolex Industries reported profit of Rs. 97.96 crore for Q2 FY24 against a loss of Rs. 95.38 crore during Q2 FY23.

EPS of the company stood at Rs. 1.58 in Q2 of FY-24 against a loss of Rs. 1.54 registered during second quarter of FY-23.

QoQ Comparison of Finolex Industries’ Numbers: Q2 FY-24 vs. Q1 FY-24

On a Quarter-over-Quarter (QoQ) basis, the company showed a decrease of 25.10% from its Q1 consolidated revenue of Rs. 1,179.17 crore during the ongoing financial year.

Net Profit also showed a downward trend, shrinking substantially by 15.06% from Rs. 115.33 crore clocked during Q1 of FY-24

Finolex Industries’ Consolidated Segment-wise Revenue

Comparison of segmentwise Finolex Industries Financials: Q2 FY23 vs. Q2 FY24

PVC Resin: Finolex Industries’ saw a decrease of 38.08% in its Q2 revenue from PVC Resin from FY23 to FY24. The company reported Rs. 297.85 crore from the PVC Resin segment during Q2 of FY-24 against Rs. 481.07 crore during Q2 of FY-23.

PVC Pipes and Fittings: Revenue from this segment grew by 6.91% to Rs. 857.15 crore in Q2 of FY-24 from Rs. 801.73 crore earned during Q2 of FY-23.

Summary of Finolex Industries’ Q2 FY24 Financial Performance

During the company’s earnings call for its Q2 FY-24 financial performance, Mr. Ajit Venkataraman, Managing Director of Finolex Industries Ltd. said, “EBITDA for the company stood at INR102.98 crores for FY’24 Q2 against EBITDA loss of INR142.67 crores for Q2 FY ’23. EBITDA margins during this quarter increased on a year-on-year basis of 11.66% compared to a negative margin of 15.16% in corresponding previous quarter of Q2 FY ’23“. Mr. Ajit further added “Q2 FY ’24 continues to witness a volume growth on a year-on-year basis on the back of continued improvement in demand largely from the plumbing and sanitation segment. Operating performance also witnessed a substantial improvement during the quarter”.

Speaking about the growth in FY-24, Mr. Niraj Kedia Chief Financial Officer (CFO) of Finolex Industries mentioned that the PVC Pipes and Fittings segment of the company is expected to grow by 15% to 20% in Financial year 2023-24.

Finolex Industries Limited: Finolex Industries Ltd. is a part of the Finolex Group, which was founded in 1958 by Mr. Pralhad P. Chhabria. The company has three manufacturing facilities, which are located at Ratnagiri and Urse in Maharashtra, and at Masar in Gujarat. Finolex Industries has a network of about 900 dealers across India. For the 2022-23 financial year the company reported a consolidated top line of Rs. 4,397.05 crore.