Jobaaj Stories
Shares of pipes manufacturer Finolex Industries declined in today’s session after the company reported a 77% decline in profits for FY23.
For the quarter that ended in March 2023, the company’s revenues declined 28% to Rs 1,141.06 crores against Rs 1,595 crores reported in the corresponding period last quarter. Quarterly EBITDA declined by 17% to Rs 217 crores, but the EBITDA margin improved by 254 bps to 19.6%. Although profit for the quarter was down 68% annually at Rs 158.35 crores, the profits grew 120% sequentially due to lower costs.
For the year that ended in March 2023, annual revenues came in at Rs 4,397.05 crores, 5.4% lower YoY. Sales of External PVC Resins declined 53% during the year, but that of Pipes and Fittings grew 28%. Sales volume grew for both segments as Resins improved by 6.5% while Pipes and Fittings saw 28% growth.
Although revenues contracted during the year, expenses grew as Total Expenses surged 13% to Rs 4,221 crores, backed by higher material and financing costs. Consequently, EBITDA declined 72% to Rs 292.54 crores as the EBITDA margin fell by over 1,500 bps to 6.65%!!
Profit for FY23 was Rs 237 crores, down 77% from Rs 1,054 crores reported in the corresponding quarter last year.
The company’s Board has recommended a dividend of Rs 1.5 per share. Shares of the company saw a massive gap down opening today as the stock opened at Rs 185 per share. Shares of Finolex Industries ultimately closed at Rs 182.05 per share, down 4.6%.
- Aman Agarwal
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