Finolex Industries tumbles after dismal Q3 performance

Finolex Industries slumped 6.47% to Rs 180.65 after the company's standalone net profit declined 31% to Rs 177.77 crore on a 6% fall in total income from operations to Rs 1,005.25 crore in Q3 FY22 over Q3 FY21.

PVC Pipes & Fittings volume registered a YoY decline of 15.3% to 46,994 MT. PVC Resin volume registered a YoY decline of 36% to 43,464 MT. PVC Pipes revenue was Rs 831.9 crore (up 14.6% YoY) and PVC Resin revenue was Rs 636.2 crore (down 7.9% YoY) in the third quarter.

EBITDA dropped by 30% to Rs 241.89 crore in Q3 FY22 from Rs 346.26 crore in Q3 FY21. EBITDA margin was 24.1% in Q3 FY22 as against 32.5% in Q3 FY21.

Prakash P. Chhabria, executive chairman, Finolex Industries, said, After a long upward trajectory, the global PVC prices have started to cool down and slightly flatten. Coupled to this, the quarter witnessed demand slowdown of PVC pipes due to weather disruptions. The demand is expected to improve with the season opening up and easing of supply chain bottlenecks.

Finolex Industries is the third-largest player in the PVC resin market and one of the largest manufacturers of PVC pipes in India. The company has three manufacturing facilities, one each in Pune and Ratnagiri (both in Maharashtra) and Masar, near Vadodara in Gujarat.

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