Finolex Industries Q3FY20 margin improves

Finolex Industries posted its results for the quarter ended December 31, 2019. The consolidated revenue for the quarter Q3FY20 came in at Rs 699.4 crore as against Rs 756.61 crore in the corresponding quarter last year, registering 7.6 per cent YoY decline. However, revenue grew 21 per cent on QoQ basis. YoY decline in revenue was led by the extended monsoon season with cyclones after which, it impacted the volumes in both the segments.

EBITDA for the quarter fell by 0.4 per cent YoY to Rs 138.43 crore, as against Rs 138.94 crore in the corresponding quarter last year, with a corresponding margin expansion of 143 bps. EBITDA margin for the quarter stood at 19.8 per cent.

Looking at the operational performance on segmental basis, PVC Resin EBIT margin stood at 20.1 per cent vs 16.7 per cent in Q3FY19 and EBIT margin of PVC Pipes & Fittings stood at 7.9 per cent vs 7.4 per cent of Q3FY19.

PAT for the quarter came in at Rs 98.53 crore as against Rs 79.77 crore in the corresponding quarter last year, with YoY increase of 23.5 per cent.

The company’s revenue mix as of Q3FY20 stood at PVC-58 per cent and PVC Pipes & Fittings-42 per cent. Looking at the volumes, PVC Resin volume registered a YoY decline of 11.5 per cent to 59,154 MT while, Pipes & Fittings volume registered a YoY decline of 10.8 per cent to 52,815 MT. In spite of lower volumes, the operating margins are good on account of better realisations and higher PVC EDC Delta.

In today’s trading session, the stock jumped nearly 1.7 per cent and made an intraday high of Rs 553.65 on BSE.