Finolex Industries (FINPIPE) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw modest volume growth in both Pipes & Fittings and PVC Resin segments despite weak demand and lower realizations, with muted operating performance.

• Revenue for Q3 FY25 was ₹1,001.2 crore, down 1.8% year-over-year, while EBITDA fell to ₹83.4 crore (8.3% margin) from ₹119.9 crore (11.8%).

• PAT for Q3 FY25 was ₹70.96 crore, compared to ₹89.21 crore in Q3 FY24; consolidated net profit was ₹94.02 crore, boosted by a ₹416.99 crore exceptional gain from land transfer.

• Strong liquidity position with free cash of ₹2,300 crore and net operating cash flow of ~₹140 crore in 9M FY25.

• Financial results were reviewed and approved by the Board on February 6, 2025, and prepared in accordance with Ind AS 34 and SEBI regulations.

Financial highlights

• Q3 FY25 revenue from operations was ₹1,001.2 crore, down from ₹1,019.7 crore in Q3 FY24; 9M FY25 revenue was ₹2,970.2 crore, down 4% year-over-year.

• EBITDA for Q3 FY25 was ₹83.4 crore (8.3% margin), down from ₹119.9 crore (11.8%) in Q3 FY24.

• PAT for Q3 FY25 was ₹70.9 crore, compared to ₹89.2 crore in Q3 FY24; 9M FY25 PAT was ₹627.6 crore, including a ₹417 crore exceptional gain.

• Net cash surplus as of Dec 31, 2024, was ₹2,300 crore, up from ₹1,570 crore a year earlier.

• Basic and diluted EPS for Q3 FY25 stood at ₹1.52, up from ₹0.66 in Q3 FY24.

Outlook and guidance

• FY25 is expected to close with single-digit volume growth, below initial double-digit expectations.

• Management is confident of double-digit growth in FY26, supported by government schemes and improving demand.

• Q4 FY25 is expected to see 5-10% volume growth, with demand picking up in February.

• Margins are expected to improve as discounting pressure eases and inventory levels normalize.

• No forward-looking guidance or projections provided in the consolidated results.