Finolex Industries declares dividend of ₹2.50, net profit at ₹165 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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PVC pipes and fittings manufacturer Finolex Industries Ltd on Friday (May 10) reported a 1% year-on-year (YoY) decline in net profit at ₹164.9 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Finolex Industries posted a net profit of ₹166.5 crore, the company said in a regulatory filing. The company’s revenue from operations increased 8.3% to ₹1,235.4 crore as against ₹1,141.1 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA rose 4% to ₹208.9 crore in the fourth quarter of this fiscal over ₹217.5 crore in the corresponding period in the previous fiscal.

EBITDA margin stood at 16.9% in the reporting quarter as compared to 19.1% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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The volume in Pipes & Fittings segment increased by 22.98% to 1,00,171 MT in Q4 of FY24 against 81,452 MT in Q4 of FY23. The volume in the PVC Resin segment was up 19.07% to 69,215 MT in Q4 of FY24 against 58,132 MT in Q4 of FY23.

FY2024

In the fiscal year 2024, Finolex Industries witnessed a decline in its total income from operations, which amounted to Rs 4,317.43 crore. This figure marked a decline of 1.81% compared to the previous fiscal year’s total income of Rs 4,397.05 crore.

In the Pipes & Fittings segment, there was a significant growth in volume, with an increase of 11.07% to reach 3,36,577 metric tonne in FY24, compared to 3,03,026 metric tonne in FY23.

The Resin segment experienced a decline in volume by 17.98% during FY24, with the volume falling to 1,96,542 metric tonne from 2,39,638 metric tonne recorded in FY23.

Finolex Industries saw an improvement in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for FY24. The EBITDA stood at Rs 584.85 crore, reflecting an increase compared to Rs 292.54 crore reported in FY23.

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Moreover, the company’s bottom line also showed promising growth, with the profit after tax (PAT) increasing to Rs 455.30 crore in FY24, marking a notable rise from Rs 236.59 crore recorded in FY23.

The board has recommended a final dividend of ₹2.50 per fully paid-up equity share of ₹2 each (face value) i.e. 125% for the financial year ended March 31, 2024, subject to deduction of tax, as applicable and approval of Members at the ensuing forty-third annual general meeting.

The results came after the close of the market hours. Shares of Finolex Industries Ltd ended at ₹272.65, up by ₹4.50, or 1.68% on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow