ECONOMY

Finolex Industries Q1 Review – Lower Sales Volume Weighed On Quarterly Results: IDBI Capital

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Finolex Industries Ltd.’s Q1 FY22 result was below our estimates on key parameters.

Statewise lockdown amid second wave of Covid-19 dented volume off-take in a seasonally good quarter for agri-pipes.

On a low base of Q1 FY21, the earnings growth is encouraging; however, on a sequential quarter result has been subdued.

Net sales increased by 71.8% YoY to Rs 9.6 billion, while Ebitda came in at Rs 2 billion, a robust growth of 137.3% over Q1 FY21.

Finolex Industries reported net profit of Rs 1.4 billion compared to Rs 567 million in the same quarter last year.

Despite a muted sales volume growth, the management reiterated to grow sales volume by ~10%-15% in FY22E and achieve pre-pandemic sales volume.

Click on the attachment to read the full report:

IDBI Capital Finolex Industries Q1FY22 Result Update.pdf

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