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Finolex Industries Q3 FY-24 Results: Revenue Shrinks 9%, PAT Jumps 20% YoY

Finolex Industries Ltd logo

Finolex Industries Limited [NSE: FINPIPE, BOM: 500940], an Indian PVC pipes and fittings manufacturer, has announced its financial results for Q3 of FY-24.

“Strong Operating Performance Despite Fall in Volumes”–Finolex Industries’s MD

During the company’s earnings call for its Q3 FY-24 financial performance, Mr. Ajit Venkataraman, Managing Director of Finolex Industries, said, “Q3 FY’24 continued to report strong operating performance despite fall in volumes on a Year-on-Year (YoY) basis”. He also said that while volumes had been strong in FY-23, Year-to-Date (YTD) FY-24 volume growth remained healthy, supported by stable prices and consistent demand from both rural and urban segments. However, it is important to note that Q3 FY-24 volume saw a decrease compared to Q3 FY-23.

Steady CAPEX in PVC Resin, Growth Plans for PVC Pipes & Fittings

Speaking about the capex for the company’s PVC Resin business, Mr. Niraj Kedia, Chief Financial Officer of Finolex Industries said, “We’ll continue to do a capex of what is required to maintain the facility, which is around INR100-odd crores every year”. He further added that the company will invest about 150 crore per annum for a period of next few years in its PVC Pipes and Fittings business.

Finolex Industries’ Q3 FY-24 Standalone Financial Figures

On a standalone basis, the company reported a revenue of Rs. 1,019.69 crore from operations and a corresponding Profit After Tax (PAT) of Rs. 89.21 crore for Q3 of FY-24.

Moreover, Earnings Per Share (EPS) of the company were reported as Rs. 1.44 for the quarter ended 31st December 2023.

Finolex Industries’s Consolidated Financial Performance for Q3 FY-24

YoY Comparison of Finolex Industries’ Financials: Q3 FY-24 vs. Q3 FY-23

Comparison of Finolex Industries Financials: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

For Q3 of FY-24, Finolex Industries’ consolidated revenue from operations stood at Rs. 1,019.69 crore against Rs. 1,124.76 crore for Q3 of FY-23. This reflects a Year-over-Year (YoY) decrease of 9.34% in company’s Q3 revenue.

The company’s Q3 PAT rose by 19.94% to Rs. 95.40 crore in FY24 from Rs. 79.54 crore clocked during Q3 of FY23.

Correspondingly, Finolex’s consolidated EPS also soared to Rs. 1.54 in Q3 of FY-24 from Rs. 1.28 during Q3 of FY-23.

QoQ Comparison of Finolex Industries’ Financial Numbers: Q3 FY-24 vs. Q2 FY-24

On a Quarter-over-Quarter (QoQ) basis, Finolex Industries exhibited a healthy increase of 15.46% in revenue, from Rs. 883.15 crore clocked in Q2 of FY-24.

However, the company’s PAT witnessed a 2.61% drop from Rs. 97.96 crore recorded during Q2 of FY-24.

Finolex’s Segment-Wise Revenue Comparison

Comparison of segment-wise Finolex Industries Financials: Q3 FY23 vs. Q3 FY24

PVC Resin: Finolex’s PVC Resin segment reported Rs. 321.07 crore as its revenue during Q3 of FY-24 against a revenue of Rs. 504.09 crore in Q3 of FY-23. Therefore, this segment shrunk 36.31% on YoY basis.

PVC Pipes and Fittings: PVC Pipes and Fittings segment of the company contributed Rs. 991.61 crore to the company’s gross revenue* in Q3 of FY-24. This reflects a YoY decline of 7.94% from Rs. 1,077.15 crore logged as revenue from this segment during Q3 of FY-23.

*Gross revenue refers to the sum of segmental revenues before the deduction of inter-segmental revenue.

Finolex Industries’ Share Prices 2% Up After Announcing Q3 FY-24 Financials

Finolex Industries’ share price increased by 2.40% after the company announced its financial results for third quarter of FY-24.

Further, volume of trades of company’s shares peaked at 11,44,000 trades after the company announced its Q3 FY-24 financials, against 6,99,000 trades a day before company announced its financials. Therefore, the volume of trades increased by 63.66% on the day Finolex Industries’ release its Q3 FY-24 financials.

About Finolex Industries Ltd.: 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.