Finolex Industries' (FNXP) Q2FY21 revenue grew 2% YoY, aided by a 15% rise in PVC resin volumes while pipes declined 9%.

Finolex Industries (FIL) reported a strong set of Q2FY21 earnings as the company reported growth of 1.6%/76.5%/21% in REVENUE/EBITDA/PAT on a y-o-y basis.

Finolex Industries' (FNXP) Q1 revenue declined 40% YoY, with volumes sliding 42% in both PVC pipe and resin segments amid the lockdown.

Key takeaways from our recent interaction with the management of Finolex Industries (FNXP): (1) FNXP witnessed healthy demand for agricultural pipes in May and June following easing of the nationwide lockdown.

Finolex Industries (FIL) reported a weak set of Q4FY20 earnings led by tepid pick-up in pipe volumes, forex losses and operating deleverage.

Finolex Industries Ltd.'s (FIL) Q4FY20 result was marred by lower volume off-take amid COVID-19 pandemic. The company's plants and business was completely shut down from March 23, 2020, which led to muted performance in otherwise a seasonally strong quarter. Net sales declined by 20.5%YoY to Rs7,661mn, while EBITDA came in at Rs1,041mn, down by 29%YoY. The company reported net profit of Rs587mn, declined by 37.2%YoY. On a positive note, plant operations have gradually started from April end and demand outlook remains healthy, particularly on agri-pipes segment. We like FIL's extensive distribution network, healthy market share in pipes segment and...

Robust growth of Finolex's non-agri pipes business did little to circumvent patchy of take of its agri pipes (impacted by longer monsoons) for overall PVC pipes & fittings volumes plunged by a distressing 10.8% to 52815 tons compared to 59179 tons in the same quarter a year ago, erasing much of the gains observed in Q1 when volumes surge by a barely subdued 18.1%. For all the babble regarding humungous market opportunities in CPVC...

Finolex Industries (FIL) Q3FY20 result was below our estimates on sales front owing to lower sales volume. However, lower inventory cost aided EBITDA. Revenue declined by 7.6% YoY to Rs6.9bn, whereas EBITDA improved by 10.8% to Rs1.3bn. Lower tax outgo supported PAT which reported growth of 25.3%YoY to 0.9bn. PVC resin volume declined by 11.5%YoY on account of extended monsoons and PVC pipes & fittings witnessed degrowth of 10.8% YoY to 52,815MT. CPVC /Column pipe volume was at 2,489MT/429MT. In spite of weak volume off take, the company has maintained its FY20 volume growth guidance of 15-20%. The management reiterated the company's...

Finolex Industries Ltd. (FIL) reported a mixed set of numbers in the quarter with revenue falling short of estimates & EBITDA coming in ahead of estimates.

Finolex Industries' (FNXP) revenue declined 8% YoY, with an 11% drop in PVC pipe and resin volumes.

Subdued off take of PVC pipe & fittings (6.1% growth) in Q2 largely due to heavy rains during monsoon season, affected its margins. Much of the damage was done due to PVC segment which reported over 50% drop in EBIT not least due to lower PVC/EDC delta - a result of higher EDC and lower PVC prices. Though PVC business profitability as measured by PVC/ EDC delta slightly improved in Q2, external sale of PVC resins...

Finolex Industries Ltd. (FIL) reported better numbers in the quarter than estimates. Revenue was up 6.3% to INR 577cr, which is 2.8% above our estimates.

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...

We met the management of Finolex Industries Ltd. (FIL) and discussed their outlook on 1) Competitive landscape in PVC and CPVC pipes and fittings, particularly post GST implementation, 2) FIL's PVC resin business, 3) Outlook on sales and margins improvement, 4) Capacity expansion plans in near future, and 5) Management strategy on CPVC business growth. FIL's strong positioning in domestic PVC pipes market, its timely foray into CPVC segment, arrangement with Lubrizol for CPVC resin availability, extensive distribution network and a strong brand recall strengthen our investment arguments. Recent corporate tax rate cut from 35% to 25.2% would drive higher net...

Finolex Industries (FIL) Q1FY20 revenue was a beat, whereas EBITDA and PAT were below our estimates owing to lower PVC-EDC spread and inventory loss due to decline in PVC prices. Revenue was up 14% YoY to Rs9.4bn, whereas EBITDA/PAT declined 36.3%/29.8% YoY to Rs1.2bn/Rs725mn. PVC resin volume and PVC pipes and fittings volume witnessed growth of 14.7%/18.1% YoY to 78,512MT/91,655MT respectively. The company has maintained its volume growth guidance of 12%-15% in pipes and fittings segment for FY20E. FIL's backward integrated operations for resin manufacturing, healthy revenue mix of agri/non-agri pipe segment (70%/30%) and well...

Finolex Industries Ltd. (FIL) reported healthy revenue growth in Q1FY20, however, margins contraction leads to lower profitability than our expectation.

Finolex Industries (FNXP) reported above-expected Q1FY20 revenue growth of 14% YoY, aided by 15%/18% higher volumes in PVC resin/PVC pipes.

Finolex Industries Ltd. (FIL) reported strong results, above our expectation. The sales growth surprised us with 19% growth and a 15% margin above our estimates.

Battered by rising EDC prices (with adverse effect on PVC/EDC delta) , margins on its flagship PVC resin business nosedived to 16.2% fin Q3 from 18.5% In the same period a year ago - 29.5% in Q2 - resulting in just 11.3% growth in PBT . Yet not imperceptible rise in margins in PVC pipes & fittings segment saved blushes for the overall OPMs expanded by some 80 bps. Restoration of price cuts undertaken in PVC pipes business...

Finolex Industries Ltd (FIL) is positive on PVC pipes demand in the longer run and believes that GST would be positive for the organized players. The company is expanding its capacity every year in order to achieve double...