Transcript of the Earnings Call held on 26th May, 2025
Awaiting price reaction for this filing.
Finolex Industries reported FY25 total income of INR4,142 crores (down from INR4,317 crores) with PAT of INR778 crores (up from INR455 crores) boosted by exceptional gains. Pipes & Fittings volumes grew 4% YoY to 347,982 MT and PVC Resin volumes rose 13% to 222,708 MT, despite weak demand and PVC resin price volatility. Q4 FY25 saw a sharp margin recovery, with EBIT per kg jumping from INR4 in Q3 to INR10.50, and EBITDA margin at 14.6%. CPVC volumes grew 17% YoY and the company holds ~30% share among organized PVC pipe players. Net cash on books stood at a strong INR2,535 crores. Management guided that FY26 will be a year of margin recovery, with double-digit internal volume targets, focus on non-agri growth (currently 67:33 agri:non-agri), and capacity addition of 50,000 MT underway. Anti-dumping duty and BIS implementation are expected to boost margins further, though timing remains uncertain.
Positive for shareholders: strong margin recovery in Q4, robust cash position of INR2,535 crores, and improving product mix toward CPVC and non-agri segments. However, management declined to specify capital allocation timeline for surplus cash and avoided giving specific margin guidance numbers, which may limit near-term visibility on shareholder returns and exact margin trajectory.