Finolex Industries Q4 Review – Healthy Revenue At Lower Margin: Reliance Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Reliance Securities Report

Finolex Industries Ltd. delivered a healthy revenue in Q4 FY22, but margin pressure remains a concern. Total revenue increased by 28% YoY and 59% QoQ to Rs 15.9 billion (higher than our estimate of Rs 14.1 billion).

Revenue of poly vinyl chloride resin segment increased by 13.5% to Rs 10.4 billion, led by 5.2% YoY increase in volume at 79,182 million tonne, while realisation improved by 8% YoY to Rs 132/kilogram.

Revenue of PVC Pipes segment rose by 42% YoY to Rs 12.8 billion, led by a 30.5% YoY jump in volume to 78,629 million tonne and a 8.5% YoY realisation growth to Rs 162/kg.

Blended Ebitda declined by 36% YoY (up 9% QoQ) to Rs 2.6 billion, lower than our estimate of Rs 3.6 billion.

We are positive on Finolex’s growth prospects, given its leadership position in the agri-pipe segment, proven track record and innovative capabilities.

Click on the attachment to read the full report:


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Most Related Links :
honestcolumnist Governmental News Finance News

Source link

Back to top button