You are here: Home » Markets » News
Business Standard

Finolex Industries surges 9% on healthy September quarter numbers

In Q2FY21, the Ebitda margin improved to 24.7 per cent from 14.2 per in the corresponding quarter of the previous year.

Topics
Finolex Industries | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

markets, stock market, sensex, nifty, shares, growth, profit, economy, gain
On a sequential basis, net profit more-than-doubled from Rs 57 crore in the June quarter (Q1FY21).

Shares of surged 9 per cent to Rs 579 on the BSE in the early morning deals on Tuesday after the company reported a 17 per cent year-on-year (YoY) growth in net profit at Rs 120 crore, on the back of healthy operational performance in September quarter (Q2FY21). The plastic products manufacturer had a profit of Rs 103 crore in the year-ago quarter. On a sequential basis, net profit more-than-doubled from Rs 57 crore in the June quarter (Q1FY21).

Ebitda (earnings before interest, taxes, depreciation, and amortisation) rose 76.5 per cent YoY to Rs 145 crore, while margin improved to 24.7 per cent from 14.2 per in the corresponding quarter of the previous year.

"Subsequent to a Covid-19 induced volume reduction in Q1, the business has witnessed a recovery in Q2 with near-normal operating conditions. The significant improvement in EBIT (earnings before interest tax) on a YoY basis is attributable to better realisations and lower costs in both the operating segments and higher volume in the PVC resin segment," the company said.

In Q2FY21, EBIT margins improved to 21.4 per cent from 10.9 per cent in Q2FY20. PVC resin EBIT margin stood at 26.9 per cent as compared to 14.9 per cent. The revenue; however, registered a single-digit YoY growth of 1.6 per cent to Rs 586 crore during the quarter.

At 09:36 am, the stock was trading 4.5 per cent higher at Rs 556 on the BSE, as compared to a 0.32 per cent gain in the S&P BSE Sensex. A combined 164,000 equity shares changed hands on the counter on the NSE and BSE.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, October 27 2020. 09:38 IST
RECOMMENDED FOR YOU
.