Finolex Industries fell 1.43% to Rs 548.55 after the company said that the production of polyvinyl chloride will get affected due to force majeure declared by a major vinyl chloride monomer supplier.
Finolex Industries post market hours on Monday said due to force majeure declared by its VCM (vinyl chloride monomer) supplier in March 2020, the operations for its VCM to PVC (polyvinyl chloride) route will be affected for 30-35 days. This would result in a shortage of PVC production of approximately 15,000 tonnes. However, its EDC (ethylene dichloride) to PVC route production will not be affected. The manufacturing and supplies of PVC pipes and fittings will also not get affected, it added.
On the technical front, the stock's RSI (relative strength index) stood at 46.110. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading between its 100-day moving average (DMA) placed at Rs 570.02 and its 200-DMA placed at Rs 536.61.
On a consolidated basis, Finolex Indutries' net profit rose 23.5% to Rs 98.53 crore on a 7.6% decline in net sales to Rs 699.40 crore in Q3 December 2019 over Q3 December 2018.
Finolex Industries is a manufacturer of PVC pipes and fittings, and PVC resins. The company operates through PVC, pipes & fittings and power segments. The firm offers its products in categories, including agricultural pipes and fittings, and plumbing and sanitation pipes and fittings.
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