Pune, Nov 17: Finolex Industries Ltd has posted a six-fold jump in profit in the first quarter of this year. Profit before tax has gone up from Rs 5.17 crore to Rs 32.51 crore for first quarter ending October 31, 1999. Total income for first quarter has gone up to Rs 172.05 crore from Rs 149.49 crore for the corresponding period last year. Sales volume in the first quarter was partially affected due to the transporters' strike in October.At the AGM held here on Wednesday, the company announced a 12.50 per cent dividend (Rs 1.25 per share of Rs 10) for financial year ended July 31, 1999. The company closed the year with a pre-tax profit of Rs 54 crore as against a loss of Rs 11 crore for the previous year. With strong internal accruals during the year, the company is prematurely retiring some of its high interest debts. The company will redeem the 1990 series secured redeemable convertible debentures of Rs 110 issued on November 30, 1990. Interest costs are expected to come down further after restructuring of borrowings.
Finolex chairman, PP Chhabria expects to sustain the growth rate in view of the increase in PVC consumption.
Enthused with this growth the company is planning to enhance existing capacity of the PVC plant. The company's pipe plant has been witnessing 100 per cent utilisation. To meet the growing demand the new 10,000 mt per annum capacity pipes plant is coming up at Ratnagiri adjacent to its PVC plant.
This plant will be fully operational by January 2000. The new plant will also add to the captive consumption of PVC. The company is also setting up a 25mw captive cogeneration power plant for the PVC plan and is in the stage of evaluating bids.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.