Finolex Industries (FINPIPE) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw robust volume growth in pipes and fittings (up 10% YoY) and PVC resin (up 7% YoY), but revenue declined 6% year-over-year to ₹828.43 crore due to weaker realisation and volatile PVC prices.

• EBITDA dropped 90% year-over-year to ₹10.57 crore, with margins falling to 1.28% from 11.66%.

• PAT for Q2 FY25 decreased 45% year-over-year to ₹51.44 crore.

• H1 FY25 revenue was ₹1,968.92 crore, with PAT at ₹556.64 crore, significantly boosted by a one-time exceptional gain of ₹416.99 crore from the transfer of leasehold land rights.

Financial highlights

• Q2 FY25 revenue: ₹828.43 crore (down 6.2% YoY); H1 FY25: ₹1,968.92 crore (down 5% YoY).

• Q2 FY25 EBITDA: ₹10.57 crore (down 90% YoY); H1 FY25 EBITDA: ₹217.2 crore (down 15% YoY).

• Q2 FY25 PAT: ₹51.44 crore (down 45% YoY); H1 FY25 PAT: ₹556.64 crore (up 172% YoY, includes exceptional gain).

• Standalone EBITDA for H1 FY25 was ₹613.49 crore, up from ₹455.30 crore YoY.

• Earnings per share for H1 FY25 stood at ₹9.00 (standalone), up from ₹3.31 YoY.

Outlook and guidance

• Full-year volume growth guidance for pipes and fittings maintained at 10%-12%.

• H2 expected to deliver 17%-20% volume growth, driven by improved market conditions and good monsoons.

• Management expects continued volume growth, especially in non-agri segments, and anticipates improved earnings as market conditions stabilize.