Finolex Industries surged 8.38% to Rs 642.40 after consolidated net profit soared 163.30% to Rs 259.40 crore on 52.5% increase in net sales to Rs 1,066.88 crore in Q3 December 2020 over Q3 December 2019.
Consolidated profit before tax (PBT) surged 163% to Rs 348.96 crore in Q3 December 2020 as against Rs 132.67 crore in Q3 December 2019. Current tax expense for the quarter jumped 122% to Rs 88.81 crore as against Rs 40.01 crore in Q3 December 2019.
The board has also declared a stock split in the ratio 1:5 (one equity share of Rs 10 will be split into five equity shares of face value Rs 2 each).
Speaking on the Q3 performance, Prakash P. Chhabria, the chairman of Finolex Industries, said: "The current year witnessed extremely challenging circumstances in terms of the impact of the pandemic on global and Indian economies. Although, it has encouraged India to become self-sufficient and stimulated the overall concept of Atmanirbhar Bharat for betterment of the nation. However, the commotion in the supply chain throughout the world has led to an increase in the price of commodities affecting the prices of finished goods directly. A decent monsoon and the subsequent increase in area under Rabi crop sowing are encouraging signs to expect higher demand on the Agri side."
"The Union Budget 2021, being the foremost budget of this decade was largely influenced by the global contraction caused by the pandemic. We believe the government has put their best foot forward to stabilize the investors and stakeholders in times of uncertainty. The budget seemed to be well allocated at a macro level for all relevant sectors that would act as ah enabler to India's economic growth. We believe that some of the key initiatives announced by the Government such as boost to the housing sector by extension of tax holiday, higher impetus on Jal Jeevan Mission, enhancement of agricultural credit and increased provision for rural infra development fund will go a long way in revival and sustainability of PVC pipes sector," he added.
Finolex Industries, headquartered in Pune, is one of the largest supplier of PVC Pipes & Fittings for the agriculture and non-agricultural sectors.
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