Finolex Industries Ltd

About

Finolex Industries Limited (FIL) is a leading manufacturer of PVC Resin and the largest producer of PVC Pipes & Fittings in India. The Company offers the latest range of superior quality and durable PVC-U pipes and fittings used in agriculture, construction and industrial operations. Its product portfolio consists of two major divisions:
PVC Resin
PVC Pipes & Fittings [1]

Key Points

Strong Backwards Integration
The company is the only large vertically integrated player in the domestic market which produces its entire requirement of PVC resin, the major raw material used in manufacturing PVC Pipes & Fittings. Interdivisional transfer of raw materials has moved up to around 86 per cent in fiscal 2020 from 11 per cent in fiscal 2008 [1]

See full details
  • Market Cap 11,901 Cr.
  • Current Price 192
  • High / Low 201 / 98.0
  • Stock P/E 14.4
  • Book Value 50.6
  • Dividend Yield 1.04 %
  • ROCE 35.6 %
  • ROE 28.8 %
  • Face Value 2.00

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 26.04% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 34.91%

Cons

  • The company has delivered a poor sales growth of 6.89% over past five years.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
543 757 964 944 577 699 769 562 586 1,066 1,249 966
418 618 818 820 495 561 665 474 441 720 839 758
Operating Profit 125 139 146 124 82 138 104 88 145 346 410 208
OPM % 23% 18% 15% 13% 14% 20% 13% 16% 25% 32% 33% 22%
Other Income 15 7 16 8 21 15 13 11 36 24 17 15
Interest 3 2 2 1 0 2 8 3 1 1 2 5
Depreciation 17 20 18 17 19 19 19 19 19 20 20 20
Profit before tax 121 125 143 113 83 133 89 77 161 349 405 198
Tax % 35% 36% 35% 36% -23% 26% 34% 27% 24% 26% 26% 27%
Net Profit 78 80 93 73 102 99 59 57 123 259 299 146
EPS in Rs 1.25 1.29 1.50 1.18 1.65 1.59 0.95 0.91 1.98 4.18 4.82 2.35

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
2,482 2,602 2,738 3,091 2,985 3,463 3,867
2,075 2,039 2,253 2,487 2,536 2,473 2,758
Operating Profit 407 563 484 604 448 990 1,109
OPM % 16% 22% 18% 20% 15% 29% 29%
Other Income 71 32 40 26 55 87 92
Interest 45 15 10 12 11 7 9
Depreciation 51 55 61 70 74 78 79
Profit before tax 383 525 454 548 418 992 1,113
Tax % 33% 32% 33% 33% 20% 26%
Net Profit 258 355 306 367 333 738 827
EPS in Rs 4.15 5.72 4.94 5.92 5.36 11.89 13.33
Dividend Payout % 48% 40% 41% 34% 37% 34%
Compounded Sales Growth
10 Years:%
5 Years:7%
3 Years:8%
TTM:48%
Compounded Profit Growth
10 Years:%
5 Years:26%
3 Years:35%
TTM:161%
Stock Price CAGR
10 Years:31%
5 Years:16%
3 Years:22%
1 Year:93%
Return on Equity
10 Years:%
5 Years:18%
3 Years:19%
Last Year:29%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
124 124 124 124 124 124
Reserves 1,466 2,191 2,671 2,452 1,862 3,015
Borrowings 212 94 101 90 283 204
583 588 610 666 623 951
Total Liabilities 2,385 2,997 3,506 3,332 2,891 4,294
850 855 884 951 1,017 1,002
CWIP 7 22 90 90 7 8
Investments 854 1,264 1,607 1,362 656 1,679
675 856 925 929 1,211 1,604
Total Assets 2,385 2,997 3,506 3,332 2,891 4,294

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
569 252 338 391 106 941
-77 35 -162 -228 49 -877
-494 -282 -175 -163 -105 -90
Net Cash Flow -2 4 1 -0 51 -26

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 3 7 6 9 9 16
Inventory Days 100 128 128 120 164 176
Days Payable 55 52 52 55 44 76
Cash Conversion Cycle 48 83 81 74 129 116
Working Capital Days 31 41 45 44 73 43
ROCE % 25% 17% 21% 17% 36%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47
3.38 2.86 2.34 2.40 2.37 2.33 2.31 2.35 2.12 2.28 2.73 2.87
9.50 9.95 10.63 11.16 12.00 11.81 12.67 12.93 13.29 12.89 11.84 11.56
34.30 34.37 34.21 33.62 32.81 33.04 32.20 31.90 31.77 32.01 32.61 32.76
0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.34

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