Finolex Industries (FINPIPE) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 saw improved operating performance, with EBITDA rising up to 53% year-over-year and PAT surging to ₹1,602.42 crore, mainly due to a one-time exceptional land sale gain.

• Revenue declined by up to 3.28% year-over-year to ₹1,140.49 crore, while non-agri (plumbing and sanitation) demand outpaced agri.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024.

• Mr. Chandan Verma was appointed as Senior Management Personnel effective July 27, 2024.

Financial highlights

• Total income from operations was ₹1,140.49 crore, down up to 3.28% year-over-year.

• EBITDA margin improved to 18.12% from 12.93% year-over-year.

• PAT reached up to ₹1,602.42 crore, including an exceptional land sale gain of ₹416.99 crore.

• Net cash surplus stood at ₹2,400 crore as of June 30, 2024, up from ₹1,650 crore a year ago.

• Basic and diluted EPS for Q1 FY25 were ₹8.17 (standalone) and ₹8.10 (consolidated).

Outlook and guidance

• Management maintains a 10%-15% volume growth target for pipes in FY2025 and similar CAGR for the next 2-3 years.

• CapEx guidance for FY2025 is ₹150 crore, with further expansion plans to be announced.

• Incremental capacity additions and debottlenecking are planned, with greenfield expansion under evaluation.

• Focus remains on expanding the non-agri (urban) segment and penetrating new markets.