Finolex Industries (FIL) Q2FY20 result was below our estimates owing to lower sales volume. Further, lower PVC-EDC spread and inventory loss due to decline in PVC prices weighed on EBITDA. Revenue was marginally up by 6% YoY to Rs5.7bn, whereas EBITDA declined by 34.4% to Rs0.8bn.Lower tax outgo supported PAT which reported healthy growth of 30.9%YoY to 0.9bn. PVC resin volume declined by 4.7%YoY on account of extended monsoons and PVC pipes and fittings volume witnessed growth of 6.1% YoY to 41,422MT/48,024MT respectively. In spite of weak Q2FY20 sales off take, the company has maintained its volume growth guidance of 12%-14% in FY20. The...