Finolex Industries (FINPIPE) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw robust volume growth in pipes and fittings (up 10.22% YoY to 69,341 MT) and PVC resin (up 7.25% YoY to 40,236 MT), but revenue declined 6.2% due to weaker realisation and volatile PVC prices.

• EBITDA dropped 90% year-over-year to ₹10.57 crore, with margins falling to 1.28% from 11.66%.

• PAT decreased 45% year-over-year to ₹51.44 crore.

• H1 FY25 net profit rose to ₹556.64 crore, significantly boosted by a one-time exceptional gain of ₹416.99 crore from the transfer of leasehold land rights.

• Total income from operations for H1 FY25 was ₹1,968.92 crore, showing a modest increase year-over-year.

Financial highlights

• Q2 FY25 revenue was ₹828.43 crore (down 6.2% YoY); H1 FY25 revenue was ₹1,968.92 crore (down 5% YoY).

• Q2 FY25 EBITDA was ₹10.57 crore (down 90% YoY); H1 FY25 EBITDA was ₹217.2 crore (down 15% YoY).

• Q2 FY25 PAT was ₹51.44 crore (down 45% YoY); H1 FY25 PAT was ₹556.64 crore (up 172% YoY, includes exceptional gain).

• Net cash surplus stood at ₹2,380 crore as of September 30, 2024.

• Earnings per share for H1 FY25 stood at ₹9.00 (standalone), up from ₹3.31 in the prior year.

Outlook and guidance

• Full-year volume growth guidance for pipes and fittings maintained at 10%-12%.

• H2 expected to see 17%-20% volume growth, driven by improved market liquidity and good monsoons.

• Non-agri segment targeted for 20% growth; long-term aim is a 50/50 agri/non-agri split in 3-4 years.

• CapEx for FY25-26 planned at ₹100-150 crore annually for maintenance and incremental capacity.

• Management anticipates improved earnings as market conditions stabilize.