Finolex Industries zooms 15% on strong operational performance in Q4

Shares of Finolex Industries hit a new high of Rs 198.90 after rallying 15 per cent on the BSE in intra-day trade on Monday after the company posted over five-fold jump in profit after tax (PAT) at Rs 297 crore in March quarter (Q4FY21), on the back of healthy operational performance. The company, India’s largest only backward integrated manufacturer of PVC pipes fittings, had a profit after tax (PAT) of Rs 56 crore in Q4FY20. The stock surpassed its previous high of Rs 178.75, touched on June 23, 2021.

Total revenue registered a year on year (YoY) growth of 62.5 per cent at Rs 1,249 crore. Ebitda (earnings before interest, taxes, depreciation, amortisation) grew 305 per cent YoY at Rs 424 crore. Ebitda margin improved to 33.9 per cent from 13.6 per cent in a year ago quarter.

The company said PVC pipes & fittings volume registered a YoY decline of 3.6 per cent to 60,232 MT. PVC resin volume registered a YoY growth of 25.3 per cent to 75,281 MT.

In the past three months, the stock has outperformed the market by zooming 62 per cent, as compared to 8 per cent gain in the S&P BSE Sensex.

Finolex Industries had announced a share split which was received positively by the markets reflecting confidence in the long-term growth plans of the company. This has increased the liquidity of the company’s shares allows more investments through the open market, with the widening of the distribution of company stocks, the management said.

At 11:37 am, the stock was up 7 per cent at Rs 185.35, as compared to 0.17 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped an over 10-fold with a combined 8 million shares were changing hands on the NSE BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information commentary on developments that are of interest to you have wider political economic implications for the country the world. Your encouragement constant feedback on how to improve our offering have only made our resolve commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed updated with credible news, authoritative views 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 more relevant content. We believe in free, fair credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism subscribe to Business Standard.

Digital Editor

Source link