Finolex Industries Ltd.’s Q1 FY24 result was inline with our estimates on key parameters. Despite PVC resin plant shut down for maintenance in April, 2023, the company reported descent sales volume growth of 3% YoY, aided by strong volume growth of pipes and fittings division.
The management reiterated focus to remain on higher volume off-take in both agri and non-agri segment.
Net sales was marginally down by 0.9% YoY to Rs 11.7 billion, while Ebitda came in at Rs 1.5 billion, higher by 21.1% YoY.
Finolex Industries reported adjusted net profit of Rs 1.1 billion, increased by 16.3% over Q1 FY23.
We have broadly maintained our earnings estimates for FY24E/FY25E. Maintain ‘Hold’ with a target price of Rs 204 (unchanged), assigning 20 times price-to-earnings ratio on FY25E.