Shares of Finolex Industries surged 16 per cent to Rs 689, also its fresh 52-week high, on the BSE on Tuesday after reporting more-than-doubled net profit at Rs 256 crore in the December quarter (Q3FY21), on back of strong revenue growth. The plastic products company had posted profit of Rs 93 crore in the year-ago quarter.
Total income from operations increased 52.5 per cent year on year (YoY) at Rs 1,067 crore, against Rs 699 crore in Q3FY20. Ebitda (earnings before interest, taxes, depreciation, and amortisation) jumped 150 per cent YoY at Rs 347 crore, while margins improved to 32.52 per cent from 19.88 per cent in previous year quarter.
The management said a decent monsoon and the subsequent increase in area under Rabi crop sowing are encouraging signs to expect higher demand on the Agri side. The management believes that some of the key initiatives announced by the Government such as boost to the housing sector by extension of tax holiday, higher impetus on Jal Jeevan Mission, enhancement of agricultural credit and increased provision for rural infra development fund will go a long way in revival and sustainability of PVC pipes sector.
Meanwhile, Finolex Industries, on Monday, announced that its board had approved the splitting of each equity share into five. This is the first time the company has gone for a share split. “The board has approved the sub-division (split) of one equity share of the bank having a face value of Rs 10 into five equity shares of face value of Rs 2 each,” the company said in a statement.
The company said that the rationale behind the stock split is to improve the liquidity of the company's shares on the stock market and also to make the same available to small investors.
At 10:23 am, Finolex Industries was trading 9 per cent higher at Rs 649 on the BSE, on the back of heavy volumes. In comparison, the S&P BSE Sensex was up 2.4 per cent at 49,748 points. The trading volumes on the counter jumped multiple-fold with a combined 720,000 equity shares changing hands on the NSE and BSE, so far.