PVC Pipes manufacturer Finolex Industries posted a profit of Rs 115.33 crore during the first quarter of FY24, up 16.2 per cent in comparison to Rs 99.22 crore in the corresponding quarter of last year. It posted revenue from operations at Rs 1179.17 crore, down 0.9 per cent as against Rs 1189.81 crore during Q1FY23, due to PVC price correction. Finolex Industries said that it registered a stable revenue during the quarter despite correction of PVC prices by more than 30 per cent since July 2022. The company EBITDA stood at Rs 152.5 crore, up 21.2 per cent on-year.
The company posted a total income of Rs 1219.43 crore versus Rs 1214.88 crore a year ago. The total expenses for the quarter came at Rs 1070.11 crore as against Rs 1096.57 crore during Q1FY23.
Finolex Industries Q1FY24 performance across segments
Finolex Industries’ PVC resin segment posted a revenue of Rs 359.41 crore during the first quarter of FY24 and its PVC pipes and fittings business vertical clocked a revenue of Rs 1154.21 crore during the period. The company stated that the volume in pipes and fittings segment increased by 28 per cent to 92,181 MT in Q1FY24 against 71,960 MT in Q1FY23. Volume in the PVC Resin segment was down 26.57 per cent to 46,074 MT in Q1FY24 against 62,746 MT in Q1FY23. Finolex Industries said that the volumes demonstrated a strong growth on a YoY basis. It also stated that the liquidity of the company remained strong during the quarter with free cash (net) of ~Rs 1650 crore.
“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, the Indian economy strongly places itself with robust domestic consumption led growth. This, we believe, will benefit the overall industry. Finolex Pipes with its strong position and brand recognition in the market is well poised to grab these growth opportunities,” said Prakash P Chhabria, Executive Chairman, Finolex Industries Limited said.