Finolex Industries Q3 net up 18.5 pc to Rs 93.3 cr

Finolex Industries on Wednesday reported a 18.5 per cent rise in net profit at Rs 93.3 crore in December quarter as higher margins offset dip in revenue.

The Pune-based company reported a 7.6 per cent fall in revenue at Rs 699.4 crore, the PVC pipes and fittings maker said in a statement.

The bottomline was boosted by an improvement in margin, which rose to 19.8 per cent from 18.4 per cent. Apart from that, tax outgo was also lower at Rs 31.3 crore as against Rs 42.2 crore a year ago.

At 93.3 crore, the net profit is the highest-ever recorded by the company, even as sales volume declined, it added.

"Volumes registered a decline of about 11 per cent in PVC resin and pipes & fittings segments. The main reason for this decline was the extended monsoon with cyclones thereafter," Finolex Industries Chairman Prakash Chhabria said.

The company had a healthy volume growth of 18 per cent in Q1, but volumes declined in the subsequent quarter due to heavy and extended monsoons and cyclones thereafter, he added.

"The Budget focus on farmers and the rural economy is expected to give an impetus to our performance in the coming quarters. Our focus is on implementing strategies to expand our footprint while serving our existing base," Chhabria added.

Shares of Finolex Industries on Wednesday closed 0.3 per cent lower at Rs 544.05 on the BSE.