April 23, 2024

Finolex Industries posted round 24 p.c YoY progress in internet revenue at Rs 89.21 crore.

Shares of Finolex Industries slipped 4 p.c in commerce on January 23 after the pipemakers’ quarterly earnings outcomes got here in beneath expectations. At 1 pm, Finolex Industries inventory was quoting Rs 225 per share on the NSE, decrease by 3.8 p.c in comparison with the earlier session’s closing value, extending losses. Over the previous 5 classes, the inventory has fallen greater than 6 p.c.

Finolex Industries posted round 24 p.c YoY progress in internet revenue at Rs 89.21 crore for October-December of the monetary 12 months 2023-23, regardless of a decline in revenue from operations. Nonetheless, on a sequential foundation, there was a decline of two.5 p.c in internet revenue.

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The gross sales income slipped by 9.3 per cent to Rs 1,019.69 crore through the reporting quarter whereas the finance value rose to Rs 7.7 crore from Rs 5.13 crore year-on-year.

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Finolex Industries reported weak outcomes with pipes and becoming/resin volumes slipping 10 p.c/32 p.c on-year resulting from destocking on fears of PVC value decline, stated Nuvama Institutional Equities.

Moreover, InCred Equities added that weak agriculture demand and a excessive base led Q3 pipe & fittings gross sales quantity to say no. “Regardless of a robust restoration in gross sales quantity anticipated for pipe & fittings and resins, a excessive base quarter and flattish margin QoQ would result in an optically weak Q4FY24,” added the brokerage.

Within the administration name, the corporate’s chiefs had been assured of rising the non-agri phase by 15 p.c for FY24. Nonetheless, for the agri phase, the administration acknowledged that demand has not picked-up but. Finolex Industries goals to double its pipe volumes within the subsequent 4-5 years.

Sure Securities maintained its promote name on the corporate, with a goal value of Rs 185 per share. InCred Equities retained its cut back score, with a value goal of Rs 182 apiece.

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