Finolex Industries (FINPIPE) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw modest volume growth in both Pipes & Fittings and PVC Resin segments despite weak demand and lower realizations, with muted operating performance and compressed margins.

• Revenue declined 1.8% year-over-year to ₹1,001 crore, with EBITDA at ₹83 crore (8.3% margin) and PAT at ₹70.96 crore, both down from Q3 FY24.

• Strong liquidity position maintained, with free cash of ₹2,300 crore and net operating cash flow of ~₹140 crore in 9M FY25.

• Exceptional gain of ₹417 crore from land transfer recognized in FY25, boosting PAT and overall profitability.

• Financial results reviewed and approved by the Board on February 6, 2025, in accordance with Ind AS 34 and SEBI regulations.

Financial highlights

• Q3 FY25 revenue from operations was ₹1,001.2 crore, down from ₹1,019.7 crore in Q3 FY24; 9M FY25 revenue was ₹2,970.2 crore.

• EBITDA for Q3 FY25 was ₹83.4 crore (8.3% margin), down from ₹119.9 crore (11.8%) in Q3 FY24.

• PAT for Q3 FY25 was ₹70.96 crore, compared to ₹89.21 crore in Q3 FY24; 9M FY25 PAT was ₹627.6 crore, including exceptional gain.

• Pipes and fittings segment revenue was flat at ₹992 crore; volume grew 5.5% YOY to 85,767 MT; EBIT fell to ₹32.13 crore.

• PVC resin segment revenue rose to ₹413 crore; volume up 30% to 56,830 MT; EBIT up to ₹39.17 crore.

Outlook and guidance

• FY25 is expected to close with single-digit volume growth, below initial double-digit expectations.

• Management is confident of double-digit growth in FY26, supported by government schemes and economic fundamentals.

• Margins are expected to improve as discounting pressure eases and inventory stabilizes.

• Focus remains on maintaining strong liquidity and operational efficiency.

• February showed improved demand in both agri and non-agri segments.