Finolex Industries' consolidated net profit tanked 37.1% to Rs 58.66 crore on 20.5% decline in net sales to Rs 766.11 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax (PBT) dropped 37.8% to Rs 88.73 crore in Q4 March 2020 as against Rs 142.73 crore in Q4 March 2019. Current tax expenses slumped 41.3% to Rs 27.58 crore in Q4 March 2020 as against Rs 47.01 crore paid in Q4 March 2019. The Q4 results was released post market hours yesterday, 23 June 2020.
EBITDA slipped 29% to Rs 104.10 crore in Q4 FY20 as against Rs 146.50 crore in Q4 FY19. EBITDA margin improved to 13.6% in Q4 FY20 from 15.2% in Q4 FY19.
PVC resin volume registered a 21.5% drop to 60,100 MT in Q4 FY20 as against Q4 FY19. Pipe and fittings volume registered a 22.7% drop to 62,464 MT in Q4 FY20 as compared to Q4 FY19. The poor market conditions continuing from previous quarter were further affected by pandemic and subsequent lockdown. Though decline in volumes was more than 20% in both PVC resin and PVC pipes segments, the margin in PVC pipes segment was higher at 10.0% during the quarter.
Due to sudden lockdown due to COVID-19 outbreak, plants and other operations were closed from 23 March 2020 which have been started from the last week of April 2020 in a phased manner. This impacted production and sales. However, the Finolex Industries has already restarted the operations in a phased manner. The firm said that it has adequate financial resources to meet the situation. The company further added that it is debt-free and has enough liquidity to manage the current situation at this time.
Commenting on the Q4 performance, Prakash P. Chhabria, the executive chairman of Finolex Industries, has stated that: "The poor market conditions continuing from previous quarter were further affected by pandemic and subsequent lockdown. Though decline in volumes was more than 20% in both PVC resin and PVC pipes segments, the margin in PVC pipes segment was higher at 10.0% during the quarter."
Finolex Industries is a manufacturer of PVC pipes and fittings, and PVC resins. The company operates through PVC, pipes & fittings and power segments. The firm offers its products in categories, including agricultural pipes and fittings, and plumbing and sanitation pipes and fittings.
Shares of Finolex Industries advanced 4.17% to Rs 501.35 on BSE. The stock hovered in the range of Rs 491.30 to Rs 519 so far.
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