Pune-based farm pipes major Finolex Industries on Tuesday reported a massive 30.5 per cent decline in net income to Rs 1,177.8 crore for the three months to December 2021 from Rs 255.9 crore a year ago, even though revenue declined only 5.7 per cent to Rs 1,005.25 crore.
The bottomline (profit) was hit as the operating margin declined to 24.1 per cent in the reporting period from 32.5 per cent, which pulled down the profit margin to 17.7 per cent from 24 per cent a year ago, the company said.
Revenue was down as the volume of pipes and fittings declined 15 per cent to 46,994 MT in the December 2021 quarter from 55,299 MT in Q3FY21, the company said.
For the first nine months of the fiscal, income from operations rose 38 per cent to Rs 3,053.92 crore from Rs 2,213.50 crore as the volume in pipes and fittings grew 4.2 per cent to 1,58,266 MT from 1,51,828 MT. It fetched the company Rs 559.67 crore in net income, up 29.9 per cent from Rs 430.70 crore.
Finolex Industries Executive Chairman Prakash P Chhabria said that after a long upward trajectory, the global PVC prices have started to cool down and slightly flatten.
"Coupled with this, the quarter saw demand slowdown of PVC pipes due to weather disruptions. But, the demand is expected to improve with season opening up and easing of supply chain bottlenecks," Chhabria added.
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