Finolex Industries Oct-Dec quarter net profit grows 24% to Rs 89.21 cr

Agri-focused pipes maker Finolex Industries on Friday reported nearly 24 per cent growth in net profit to Rs 89.21 crore for the third quarter ended December 2023, despite a decline in income from operations.

The Pune-based company said its sales revenue declined by 9.3 per cent to Rs 1,019.69 crore during the reporting quarter and also saw its finance cost rise to Rs 7.7 crore from Rs 5.13 crore year-on-year.

The company's profit margin rose to 8.7 per cent from 6.4 per cent in the year-ago period, the company said in a statement.

Overall sales declined as PVC resin sales plunged 43 per cent to 2,759 MT from 4,863 MT, while pipes and fittings declined 10 per cent to 81,312 MT from 90,396 MT.

Finolex executive chairman Prakash Chhabria said the marginal decline in volume was due to a high base, as FY23 saw a huge pent-up demand for agri-pipes and fittings, leading to highest-ever sales in the country. But this is taken care of by the soaring demand for plumbing and sanitation products.