Mid-Cap PVC Stock Posts Net Loss Of 68% YOY, Declares 75% Dividend

The fourth quarter performance of Finolex Industries Limited was poor. The company posted a net loss of Rs 158.35 for Q4FY23, a steep fall of 68% over the same period last year. However, along with the results, the mid-cap company has declared a dividend of 75%, which was filed with the securities exchange on Monday.

The company's revenue for the quarter and the financial year was down by 28% and 5% year-on-year (YoY) basis to Rs 1,141.06 crore and Rs 4,397.05 crore respectively. However, the EBITDA margins expanded by 19.06% for the quarter while for the full year, there was contracted by 6.65%.

Finolex reported a net loss of Rs 158.35 crore for Q4FY23 and Rs 236.58 crore for FY23. Even the profit margins shrunk by 13.88% and 5.38% respectively.

However, the volume in the pipes & fittings segment increased by 3.59% to 81,452 MT in Q4FY23 against 78,629 MT in Q4FY22. But the volume in the PVC resin segment was down 26.58% to 58,132 MT in Q4FY23 against 79,182 MT in Q4FY22.

While for the full year, the volume in the pipes & fittings segment grew 27.92% to 3,03,026 MT in FY23 against 2,36,895 MT in FY22. Also, the volume in the resin segment was up 6.54% to 2,39,638 MT in FY23 against 2,24,924 MT in FY22.

While for the full year, the volume in the pipes & fittings segment grew 27.92% to 3,03,026 MT in FY23 against 2,36,895 MT in FY22. Also, the volume in the resin segment was up 6.54% to 2,39,638 MT in FY23 against 2,24,924 MT in FY22.

Commenting on the results, company's executive chairman Prakash P. Chhabria said, "After a subdued volume growth in last 3 years, stabilisation in prices has led to a strong pent-up demand. The momentum is expected to sustain in the long run with the overall growth prospects in the rural and real estate sector of the country. The company has witnessed a strong financial performance on a full year basis, marking a new milestone achievement of record sales volume growth."

Dividend Details

Further, the Board of Directors of the company recommended a final dividend of Rs 1.50 per fully paid-up equity share of Rs 2 each (face value), i.e. 75%, for the financial year ended 31st March 2023, subject to deduction of tax, subject to approval of members at the ensuing 42nd Annual General Meeting (AGM).

The company will inform, in due course, about the date of the AGM and the date of payment of dividend.

Stock Price Movement

The latest stock price of Finolex Industries closed marginally higher by 0.29% to Rs 190.80. In the last one year, the share price has rallied by 27.67% while in the last three years, it has surged massively by 134.05%