Shares of Finolex Industries Ltd surged 8.31% to Rs 226.32 in early trade on Monday after the company declared its Q4 results and announced a robust final and special dividend. The stock rose Rs 17.36 from its previous close of Rs 208.96, pushing its market capitalization to Rs 138.24 billion.
For the quarter ended March 2025, revenue declined 5% year-on-year (YoY) to Rs 1,171.8 crore, compared to Rs 1,235.4 crore in Q4 FY24. Net profit remained flat at Rs 165 crore, showing little growth despite the dip in revenue.
However, EBITDA dropped 18% YoY to Rs 171.3 crore from Rs 209 crore, with the EBITDA margin contracting to 14.62% from 16.90% a year ago, reflecting operational pressure.
In a positive move for shareholders, the Board of Directors has recommended a final dividend of Rs 2 per share and a special dividend of Rs 1.60 per share, amounting to a total payout of Rs 3.60 per equity share (180%) for FY25. This is subject to shareholder approval at the company’s upcoming 44th Annual General Meeting.
Despite the operational softness, investor sentiment remained upbeat, possibly driven by the strong dividend and stable bottom line.
Finolex Industries currently trades at a P/E ratio of 17.26 and offers a dividend yield of 1.12%, with average daily volume exceeding 1.62 million shares.
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