How were the quarterly results of Finolex Industries for the Dec-21 third quarter?
Answer
Answer
Finolex Industries, an industry leader in PVC pipes, reported -5.7% lower revenues for the Dec-21 quarter at Rs.1,005 crore. Even on sequential basis, revenues were lower -7.17% due to the back-ended impact of Omicron variant in Dec-21. During the quarter, Finolex saw low sales of PVC but an improvement in the sales of PVC pipes and fittings. Both agri and the construction sector saw weak demand leading to lower sales. Here is a summary.
Finolex Industries
Rs in Crore
Dec-21
Dec-20
YOY
Sep-21
QOQ
Total Income (Rs cr)
₹ 1,005.25
₹ 1,066.06
-5.70%
₹ 1,082.95
-7.17%
Net Profit (Rs cr)
₹ 177.43
₹ 259.40
-31.60%
₹ 233.25
-23.93%
Diluted EPS (Rs)
₹ 2.86
₹ 4.18
₹ 3.76
Net Margins
17.65%
24.33%
21.54%
Revenue tepidness plus higher costs transmitted in the form of weak profit growth numbers for Finolex Industries. PAT for the Dec-21 quarter was down -31.6% at Rs.177.43 crore as the fall was exacerbated by the spike in raw material costs. While sales were lower yoy , the raw material costs spiked 32% at Rs.887 crore. EBIT of PVC business as well as of the PVC pipes and fittings business were lower. Net margins fell 668 bps yoy to 24.33% in Q3.