Fundamentals remain strong and forecast for FY25 remains same: Finolex MD
Ajit Venkataraman, MD, Finolex Industries, says “Our profitability has improved significantly, if you see, over the past. In the normal operating condition, our profitability has improved from Rs 7.5 per kg to almost Rs 10-11 per kg. That is mainly due to a better product mix that we have had, more of non-agri contribution to the overall mix. And going forward, we expect it to be reaching almost Rs 12 per kg going forward.”
Earlier you gave a volume growth guidance of 15-20% for pipes and fittings. Considering that volume has seen a decline for both these segments does this guidance then stand intact? How does FY25 look in terms of volumes?
Ajit Venkataraman: The guidance was based on the basic fundamentals. You are going to see a few blips along the way. For example, the volumes in the agri segment have been fairly lukewarm since the end of Q2 and have not really picked up to the extent that we had seen last year but the fundamentals remain strong and the forecast for FY25 remains the same.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowIIML Chief Marketing Officer ProgrammeVisitI do not think it is going to be based on Q3 performance. But at the same time, the EBITDA margins have improved almost 30.5%. And the main revenue drop has been due to the raise in volume dropping almost 30-32%.
If you could help in terms of the prices and the spreads for PVC, VCM, etc. for the third quarter, any inventory losses that you are seeing?
Ajit Venkataraman: No inventory losses. The PVC-EDC spread, typically we expect to be higher than S550. It is currently at S410
