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    High PVC prices helping offset costly raw materials: Finolex Industries

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    High PVC prices helping offset costly raw materials: Finolex Industries

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    Finolex Industries surged in trade on the back of its Q4FY21 earnings led by strong growth in the PVC resin segment. Anil Whabi, Director of Finance and CFO at Finolex Industries, discussed the performance.

    Finolex Industries surged in trade on the back of its Q4FY21 earnings led by strong growth in the PVC resin segment. Anil Whabi, Director of Finance and CFO at Finolex Industries, discussed the performance.
    Whabi hopes to see improvement in the next few quarters. He shared, “Major part of our volumes go for irrigation pipes where, because of all these initiatives by government in irrigation infrastructure, we should see good growth happening. We expect growth to be in double-digit numbers if everything comes back to normalcy.”
    The company has started the year with the expectation that it will be back on normal operations level, he said.
    “Though the production is on, because of logistics issues and lockdowns, the volumes have suffered,” he added.
    “If the operations were to run normally and the demand remains, but because of these disruptions, volumes may suffer.
    PVC prices are on a historic high. At the same time, the raw material for PVC also went up. “Because of that, margins in the PVC resin segment have improved dramatically. Since April, the PVC prices have started easing and so have the raw material prices also. So, it is possible that in the next few quarters, PVC prices will reach their normal levels. Today, with high PVC price, even the high prices of raw material are not hurting us,” Whabi stated.
    The management does not intend to keep large cash in the balance sheet. “We have proposed a 200 percent dividend, which will be about 35 percent of our profits and we will be looking at the growth opportunities as well,” he shared.
    For the full interview, watch the accompanying video.
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