Finolex Industries Limited, has clocked a turnover of Rs.359 crores and reported a net profit of Rs.48 crores for the quarter ended June 30 2009, as compared to Rs.485 crores and Rs.12 crores respectively in the corresponding quarter of previous year.
The operating profit for the quarter was Rs.89 crores [growth of 56% over corresponding quarter of previous year].
Commenting on the financial performance for the quarter, Mr. Saurabh S. Dhanorkar, Asst. Managing Director, Finolex Industries Limited, said, ?The Company has achieved a strong profitability for the quarter on the back of sharply improved delta between the raw material prices and the selling prices. With the reduction in international petrochemical prices, in line with the reduction in crude oil prices, the selling price of PVC Resin as well as PVC Pipes have come down in comparison with the prices prevalent in the corresponding quarter of previous year. This has reflected in the lower turnover for the quarter ended June 30 2009. However, the prices of raw materials have also seen a sharp decline. The Company was able to take advantage of this decline and has been able to improve the margins accordingly.
The demand for PVC Pipes continues to be strong. In volume terms the Company has reported a sales growth of 32% as compared to the corresponding quarter of the previous year. There is a corresponding increase in the captive consumption of PVC Resin for the manufacture of PVC Pipes and accordingly the sales to outside parties have come down. The Company has already initiated measures to increase the PVC Pipes capacity from 97,200 MT p.a. to 140,000 MT p.a. The additional capacity is expected to be operational by the end of the current financial year.?