BWI: Finolex Industries Reports Net Profit of Rs.48 crores for Quarter Ending June 30 2009

Press release from Business Wire India
Source: Finolex Industries Ltd.
Monday, July 27, 2009 04:28 PM IST (10:58 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Chemicals, Commodities & materials, Financial Analyst, Heavy industries, Stock exchanges
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Finolex Industries Reports Net Profit of Rs.48 crores for Quarter Ending June 30 2009


Pune, Maharashtra, India, Monday, July 27, 2009 -- (Business Wire India) -- Finolex Industries Limited [FIL], has clocked a turnover of Rs.359 crores and reported a net profit of Rs.48 crores for the quarter ended June 30 2009, as compared to Rs.485 crores and Rs.12 crores respectively in the corresponding quarter of previous year.

The operating profit for the quarter was Rs.89 crores [growth of 56% over corresponding quarter of previous year].

Commenting on the financial performance for the quarter, Mr. Saurabh S. Dhanorkar, Asst. Managing Director, Finolex Industries Limited, said, "The Company has achieved a strong profitability for the quarter on the back of sharply improved delta between the raw material prices and the selling prices. With the reduction in international petrochemical prices, in line with the reduction in crude oil prices, the selling price of PVC Resin as well as PVC Pipes have come down in comparison with the prices prevalent in the corresponding quarter of previous year. This has reflected in the lower turnover for the quarter ended June 30 2009. However, the prices of raw materials have also seen a sharp decline. The Company was able to take advantage of this decline and has been able to improve the margins accordingly.

The demand for PVC Pipes continues to be strong. In volume terms the Company has reported a sales growth of 32% as compared to the corresponding quarter of the previous year. There is a corresponding increase in the captive consumption of PVC Resin for the manufacture of PVC Pipes and accordingly the sales to outside parties have come down. The Company has already initiated measures to increase the PVC Pipes capacity from 97,200 MT p.a. to 140,000 MT p.a. The additional capacity is expected to be operational by the end of the current financial year."

About Finolex Industries Limited

Finolex Industries Limited (FIL) is part of the Rs.2500 Crores, Finolex group and the largest manufacturer of PVC Pipes and Fittings in India. The Pipes division of FIL is the first Indian Pipe manufacturer to be awarded IS/ISO 9001:2000 Certification. FIL offers a wide range of PVC Pipes and Fittings from 20mm to 400mm diameter for diverse applications in Agriculture, Housing, Telecom, Industry, etc.

The production capacity of the Pipes division of FIL is spread over its two ultramodern Plants at Urse-Pune and Ratnagiri, Maharashtra. FIL is in the process of increasing this capacity further, in the current financial year. FIL has a Nation wide distribution network with more than 15,000 dealers and retailers spread across the country.

FIL is also the only PVC Pipes manufacturer to have its own PVC Resin Plant. This ultramodern PVC Resin plant is located at Ratnagiri-Maharashtra, with a capacity of 2, 60,000 TPA.

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