The shares of Finolex Industries Ltd fell by 6% at ₹180.95 per share against the previous close at ₹193.40 per share, in today’s early trade on NSE. Pune-based farm pipes major Finolex Industries on Tuesday reported a massive 30.5% decline in net income to ₹1,177.8 crore for the three months to December 2021 from ₹255.9 crore a year ago, even though revenue declined only 5.7% to ₹1,005.25 crore.
“The bottom-line (profit) was hit as the operating margin declined to 24.1% in the reporting period from 32.5%, which pulled down the profit margin to 17.7% from 24% a year ago,” the company said. Revenue was down as the volume of pipes and fittings declined by 15% to 46,994 MT in the December 2021 quarter from 55,299 MT in Q3FY21.
For the first nine months of the fiscal, income from operations rose 38% to ₹3,053.92 crore from ₹2,213.50 crore as the volume in pipes and fittings rose 4.2% to 1,58,266 MT from 1,51,828 MT. It fetched the company ₹559.67 crore in net income, up 29.9% from ₹430.70 crore.
Finolex Industries Executive Chairman Prakash P Chhabria said that after a long upward trajectory, the global PVC prices have started to cool down and slightly flatten. “Coupled with this, the quarter saw demand slowdown of PVC pipes due to weather disruptions. But, the demand is expected to improve with season opening up and easing of supply chain bottlenecks,” Chhabria added.