Finolex Q1 result: Net profit up 10% to ₹110.88 crore, shows volume growth despite PVC price correction
Finolex Industries is one of the most trusted PVC pipes and fittings manufacturers in India. Today, it presented unaudited financial results for the fourth quarter ended June 30, 2023, at its board meeting. Finolex Industries, a manufacturer of pipes, announced a 10% increase in net profit to ₹110.88 crore in for the quarter ending in June on Wednesday.
The company has shown strong margins and volume growth despite a significant correction in PVC prices of over 30% since July 22. The operating margin has improved, and the volumes demonstrate strong year-on-year growth. The company's liquidity remains strong.
However, the total revenue was slightly lower year-on-year at Rs. 1,179 Cr compared to Rs. 1,190 Cr in Q1FY23 due to the PVC price correction. EBITDA increased by 21% year-on-year to Rs.
152 Cr, but it decreased by 30% from Rs. 217 Cr in Q4FY23. Profit before tax (PBT) was Rs.
149 Cr, higher than Rs. 118 Cr in the previous year but lower than Rs. 216 Cr in Q4FY23.
The volume of PVC Pipes & Fittings grew by 28% year-on-year to 92,181 MT, while the volume of PVC Resin decreased by 27% year-on-year to 46,074 MT. The company has a strong balance sheet with free cash (net) of approximately Rs. 1,650 Cr.
In Q1 FY24, the company's total income from operations was Rs. 1,179.17 Cr, which represents a 0.89% decrease compared to Q1FY23. Commenting on the quarterly results, Mr. Prakash P.
Chhabria, Executive Chairman, Finolex Industries Limited said, “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. Despite global backdrops, Indian economy strongly places itself with robust domestic consumption led growth. This,
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