Turnover up by 18 percent to Rs 266.64 crore
(ii) PVC demand in India grows by 20%
(iii) Management decides to increase PVC capacity by
an additional 130,000 MTp.a.
(iv) FIL plans to increase PVC Pipes capacity further
to 65,000 MT p.a. during the next quarter.
Finolex Industries Ltd [FIL] has once again delivered
an impressive performance for the quarter ended 31st
December 2003. Net Profit for the period has more than
doubled to Rs 28.4 crore as compared to Rs.12.86 crore
in the quarter ended December 2002, which is an increase
of 121 percent. The turnover during the quarter increased
by 18 percent to Rs 266.64 crore as compared to Rs 226.28
crore in the quarter ended December 2002.
per Share (EPS) for the quarter ended 31st December
2003 is Rs.2.29 (against Re.1.00 for the corresponding
quarter of earlier year) & Cash Earnings per Share
(CEPS) is Rs.3.16 (against Rs.1.82 for the corresponding
quarter of earlier year)
net profit for the quarter has been healthy on account
of better sales realisation with substantial increase
in margins. While the prices of raw material in international
markets remained subdued, the prices of PVC in international
markets firmed up during the quarter ended 31st December
domestic demand for PVC has already outstripped supply.
In fact, data available clearly shows that PVC demand
in India is estimated to have grown by almost 20 percent
during the first half of FY 2004. The market is expected
to grow at 8 percent to 10 percent p.a. over the next
few years. The PVC Division of FIL has been doing exceptionally
well and enthused by the performance, the management
of FIL has decided to increase the PVC capacity by an
additional 130,000 MT p.a. As the International prices
of PVC are expected to remain healthy in the near future,
the expectations of a strong year ahead for PVC cannot
be ruled out.
PVC Pipes division is also witnessing strong demand
growth on the back of a good monsoon. Various large
schemes including Andhra Pradesh Micro Irrigation Project
(APMIP) have been launched recently, which will give
a further boost to the PVC Pipes demand. Further, the
Union Government has recently announced several incentives
for the agricultural sector. As FIL''s focus is mainly
on the rural markets, this is expected to result in
strong growth in PVC Pipe sales. FIL had increased the
PVC Pipes capacity from 52,000 Mts p.a. to 59,000 Mts
p.a. during last quarter. FIL plans to increase the
capacity further to 65,000 Mts p.a. during the next
company has already disbursed an interim dividend @
Re. 1 per share for the current year.
may be noted that Finolex Industries Limited [FIL] is
the largest manufacturer of PVC pipes and third largest
manufacturer of PVC Resin in India. FIL has received
the ISO/14001 certification for Environmental Management
System for PVC and PVC pipes plants at Ratnagiri. The
Company has also been accredited with the new ISO Certification
[IS/ISO 9001:2000] for PVC pipes plant at Pune and Ratnagiri.
The PVC plant at Ratnagiri has recently received "Prashansa
patra" from National Safety Council of India for
its "very good safety record". FIL has received
the National Safety Award for 3 years in succession.