Finolex Inds up 9%

Finolex Industries yesterday evening, after market hours announced its earnings for Q2FY21. Its consolidated revenue from operations rose by a tepid less than 2% (YoY) at Rs.586 crore but net profit rose 17% at Rs.120 crore. Almost doubling of other income and a 19% drop in total expenses helped.

EBITDA rose 76% at Rs.145 crore and margin went up from 14.2% to 24.7%.

Its PVC Resin was the winner – its volumes rose 15% and EBIT margin went up from 14.9% to 26.9%. On the other hand, Pipe and Fittings volumes declined 9% but its EBIT margin jumped up from 4.6% to 7.8%. Significant improvement in EBIT is attributable to better realisations and lower costs in both the operating segments.

The market is very happy with this performance. Infact it has been gaining for the past four days. Today it opened with a gain of 3.2% and hit an intraday high at Rs.579, rising 9% on a 7-times jump up in volumes. Its 52-week is Rs.635 and 20% UC of the day at Rs.638.50.