Q2 2025 Finolex Industries Ltd Earnings Call Transcript
Key Points
- Finolex Industries Ltd (BOM:500940) reported a robust growth in volume in the pipes and fittings segment, with a 10.22% year-on-year increase to 69,341 metric tons.
- The PVC resin segment saw a revenue increase to INR308.49 crores in Q2 FY '25 from INR297.85 crores in Q2 FY '24, with a volume growth of 7.25%.
- The company maintains a strong balance sheet with a net cash surplus of approximately INR2,380 crores as of September 30, 2024.
- Finolex Industries Ltd (BOM:500940) is expanding its capacity by adding 40,000 to 50,000 metric tons in existing facilities, expected to be operational by Q4 FY '25.
- The company is optimistic about achieving a 10% to 12% growth for the year, driven by expected improvements in the second half due to favorable market conditions and good monsoon rains.
- Total income from operations decreased by 6.2% to INR828.43 crores in Q2 FY '25 compared to INR883.15 crores in Q2 FY '24.
- EBITDA saw a significant decline of 90% year-on-year to INR10.57 crores in Q2 FY '25 from INR102.98 crores in Q2 FY '24, with EBITDA margins dropping to 1.28%.
- The company reported a 45% drop in PAT to INR51.44 crores in Q2 FY '25 from INR93.78 crores in Q2 FY '24.
- The pipes and fittings segment experienced a decrease in revenue by 3.57% year-on-year, and EBIT in this segment decreased by over 157% to a loss of INR38.54 crores.
- The company faced challenges due to volatility in PVC prices and prolonged monsoons, impacting overall performance and margins.
Ladies and gentlemen, good day, and welcome to the Finolex Industries Q2 FY '25 Earnings Conference Call hosted by ICICI Securities.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Arun Baid. Thank you, and over to you, sir.
Thank you. On behalf of ICICI Securities, I welcome you all to the Q2 FY '25 results con call of Finolex Industries. We have the senior management including Mr. Ajit Venkataraman, MD; and Chandan Verma, Interim CFO right now. Now I hand over the call to Ajit, post which we will open up for question and answers. Over to you Ajit.
Thank you, Arun. Good morning, ladies and gentlemen.
Good morning, all. This is Chandan.
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