Finolex Industries Ltd. share price target

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 (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...

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.

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