Finolex Industries Ltd. — Interim / Quarterly Report 2021

Jul 30, 2021

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FIL/SEC/ SEs/ 2021-22 / 032

30th July, 2021

Listing Department The Manager -	The Manager - Listing Department
National Stock Exchange of India	BSE Limited
Limited	Registered Office: Floor 25
5, Exchange Plaza	P.J.Towers
Bandra-Kurla Complex	Dalal Street
Bandra (East),	Mumbai 400 001
Mumbai 400051
Scrip Code: FINPIPE	Scrip Code: 500940 / FINOLEXIND

Sub: Presentation on Unaudited Financial Results for the quarter e nded on 30th June , 2021

Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/ Madam,

In terms of the subject referred regulation, a presentation on Unaudited Financial Results along with the volume data and earning release of the Company for the quarter ended 30th June, 2021, is enclosed.

You are requested to kindly take the above on your records.

Thanking you,

Yours truly,

For Finolex Industries Limited

Encl. : As above

+91 20 27408200 +91 20 27474444 _,..._,....r,;;...r. __ ,_··-=--- ---

Investor Presentation Q1 FY22

Better performance led by volume recovery in both segments

PVC Pipes & Fittings volume registered a y-o-y growth of 5.5%

PVC Resin volume registered a y-o-y growth of 10.6% to

Segment Volume – Q1 FY22

2

Liquid Investments (Net of Borrowings) at Rs 606 Crs

Resin Pipes and Fittings

Q1 FY21 Q4 FY21 Q1 FY 22

P&F EBIT (Rs Cr)

Q1 FY21 Q4 FY21 Q1 FY 22

PVC EBIT (Rs Cr)

4

Q1 FY21 Q4 FY21 Q1 FY 22

Q1 FY21 Q4 FY21 Q1 FY 22

Revenue (Rs Cr) EBITDA (Rs Cr)

PAT (Rs Cr)

235 825 606 Q1 FY21 Q4 FY21 Q1 FY 22

Summarised Income Statement

Rs. in Crores	Q1FY22	Q1FY21	YOY Change
Total Income from operations	965.72	561.89	71.9%
EBITDA	209.51	88.24	137.4%
EBITDA margin (%)	21.7%	15.7%
Depreciation	20.06	18.83
EBIT	189.45	69.41	173.0%
EBIT %	19.6%	12.4%
Other Income	15.35	8.32
Finance costs	4.76	3.28
Profit before tax	200.04	74.45	168.7%
PBT %	20.7%	13.2%
Tax	53.24	19.34
PAT	146.80	55.11	166.4%
PAT %	15.2%	9.8%

PVC (USD/MT) PVC/EDC Delta (USD/MT)

EXPANDING FOOTPRINT

Expand distribution network in all geographies with higher focus in the northern and eastern regions

CAPACITY EXPANSION

Increase installed capacities of PVC pipes and fittings in order to capture expected increase in demand.

CASH-N-CARRY

Follow Cash-n-carry model to keep the balance sheet light.

BRANDING

Promote brand and quality consciousness amongst consumer.

Distribution Reach

• FIL is on track in terms of expanding its scale of operations by increasing production capacity and distribution reach
• Wide network of 21,000 retail touch points

Offices & Plants

Promotion Of Education – Accessible and Quality Education Eradicating Extreme Hunger and Poverty Promoting Preventive Healthcare

• Ensuring learning doesn't stop due to lockdown, world class amenities at MMV to provide holistic education.
• Scholarship for BSC and MSC students in 10 Agricultural colleges
• Pre School Block at Henk Bruna Swamy Vivekananda Roundtable school impacting 350 Children
• Teachers Salaries at ROBA Trust, Dehradun

• 1 Crore individual impacted in our endeavour in eradicating hunger and poverty over the years. 56 Cataract surgeries, 4,500 Diabetic patients , 3 Diabetic Camps & 16 Blood test were financially supported
• 48,000 meals provided to street dwellers at JM Road Pune Ration Kit to 800 Transgender persons in Pune & Mumbai, 2,000 Frontline warriors in Gujarat, 100 slum dwellers in Pune Through Annamrita Foundation, over 13,500 & 7200 meals to daily wagers and children respectively along with Grocery and Diaper 64 patients were supported for domestic expenses at Leprosy Rehabilitation Centre 515 Thalassemia patients supported. Over the years MMF has been instrumental in training Medical Professionals, supporting Hospital infrastructure and other activities
• support to senor citizen homes in Pune

Promotion of Vocational Skill and Livelihoods Promoting Gender Equality and Empowering Women Other Key Initiatives & Partnerships

• 460 families supported with ration kits in Matheran Maharashtra
• 2 period positive holiday homes in Gadchiroli

• 109 women provided with sewing machine

• supported with sarees on International Widows Day

• Widowed Women farmers in Osmanabad, Maharashtra were Total Women supported 424.

• Over the years MMF has been equipping women with necessary skills and providing them with employment opportunities

• Cement Nala Band Construction at Katfal Solapur impacting 625 families

• ROs and water coolers provided to 18 schools in Gujarat impacting 3800 students
• Continued support to Differently abled .
• MMF and FIL encouraged its employee Shrikant Jadhav to follow its dream to mountaineering expeditions to summit 6 peaks

CSR Activities in Q1 FY22 – Covid -19 Relief and Key Initiatives & Awards

FIL & MMF have been working relentlessly to support the society in the times of a global health pandemic through extending support in various needs for Groceries, PPE kits, Healthcare , Safety kits that has arisen from this pandemic across India. Over the last few months

• 478 Oxygen concentrators, 68 Ventilators
• 5,500 Warrior Kits,
• 96 Hospitals supported
• Support extended almost all states/UTs in India
• 250 PPE Kits to Sane Guruji Hospital Pune
• Pune

Covid Awareness campaign across 37 Locations in

Sassoon & Bella Air Hospital provided with body wraps

• Infrastructure support to Kanzar Public Health centre, Masar Gujarat.
• Action Aid remunerated 27 volunteers, 9 centre

Indian Plumbing Association Magazine Ads Newspaper Ads

Outdoor Advertising, Event Promotion, Television Commercials

Events Association Outdoor Advertising/Events Television Commercials

Pre-Campaign Teasers IPL Theme Posts Television Commercials

Finolex Industries Ltd.

Volume Data

Sr. No.	Particulars	Q1FY19	Q2FY19	Q3FY19	Q4FY19	Q1FY20	Q2FY20	Q3FY20	Q4FY20	Q1FY21	Q2FY21	Q3FY21	Q4FY21	Q1FY22
1	Production in MT
a	PVC Resin	52,757	45,839	76,686	84,221	51,785	41,347	83,370	70,891	13,785	43,338	84,016		83,896 53,817
b	PVC pipes & fittings	73,276	54,714	63,525	67,814	88,297	62,786	53,355	59,250	44,697	54,406	51,702		61,901 55,430
2	Sales in MT
a	PVC Resin-External	13,048	8,781	22,211	22,640	11,618	6,997	19,908	17,076	7,853	9,665	31,475	26,825	8,726
	PVC Resin-Inhouse	55,406	34,680	44,627	53,909	66,894	34,425	39,246	43,025	37,582	37,965	36,266		48,456 41,523
	Total PVC	68,454	43,461	66,838	76,549	78,512	41,422	59,154	60,100	45,435	47,630	67,741		75,281 50,249
b	PVC Pipes	73,065	40,648	54,309	75,043	86,349	43,255	47,328	57,361	49,856	38,503	49,426		54,189 50,626
c	PVC Fittings	4,571	4,625	4,869	5,728	5,306	4,769	5,487	5,104	3,054	5,115	5,873	6,042	5,192
	Total Pipes and Fittings	77,636	45,272	59,179	80,771	91,655	48,024	52,815	62,464	52,911	43,618	55,299		60,232 55,819

FOR IMMEDIATE RELEASE

Finolex Industries posts strong results for Q1 FY22 Q1FY22 Net Revenue up 71.9 % at Rs. 965.72 Cr and EBITDA up 137.4 % at Rs. 209.51 Cr

Pune, 30 July 2021: Finolex Industries Limited (NSE:FINPIPE|BSE:500940), India's largest and only backward integrated manufacturer of PVC Pipes and Fittings, at its Board Meeting held today announced unaudited financial results for the first quarter ended June 30, 2021.

Key Financial Highlights: (INR- Cr)

Rs Cr	Q1 FY22	Q1 FY21	% change
Net Revenue	965.72	561.89	71.9%
EBITDA	209.51	88.24	137.4%
PAT	146.80	55.11	166.3%

Q4 FY21 Highlights:

• Total income from operations was Rs 965.72 Cr for Q1FY22 up 71.9% against Rs 561.89 Cr in Q1FY21.
• Volumes in Pipes and Fittings segment grew 5.5% to 55,819 MT in Q1FY22 against 52,911 MT in Q1FY21
• Volumes in PVC Resin segment grew 10.6% to 50,249 MT in Q1FY22 against 45,435 MT in Q1FY21
• EBITDA stood at Rs 209.51 Cr for Q1FY22 up 137.4% against Rs 88.24 Cr for Q1FY21.
• Profit after tax was at Rs 146.80 Cr for Q1FY22 up 166.3% against Rs 55.11Cr for Q1FY21.

Commenting on the results, Mr. Prakash P. Chhabria, Executive Chairman, Finolex Industries Ltd. said, "The Company has reported robust set of financials, despite the overall business environment remaining subdued due to the 2nd wave of the pandemic. After reaching all-time highs, the PVC prices seem to be cooling off, which is a positive sign for further opening up of the market. We remain committed to our long-term growth goals and retain our focus on profitability built on a sustainable business, ensuring long-term value to all our stakeholders."

Particulars (Rs Cr)	Q1FY22	Q1FY21	Inc / Dec (%)
Total Income from operations	965.72	561.89	71.9%
EBITDA	209.51	88.24	137.4%
EBITDA margin (%)	21.7%	15.7%
Depreciation	20.06	18.83
EBIT	189.45	69.41	173.0%
EBIT %	19.6%	12.4%
Other Income	15.35	8.32
Finance costs	4.76	3.28
Profit before tax	200.04	74.45	168.7%
PBT %	20.7%	13.2%
Tax	53.24	19.34
PAT	146.80	55.11	166.4%
PAT %	15.2%	9.8%

Profit and Loss Account Summary Table: (INR-Cr)

About Finolex Industries:

Finolex Industries Limited, headquartered in Pune, is India's largest and only integrated manufacturer of PVC Pipes & Fittings. Three state-of-the-art manufacturing plants at Pune and Ratnagiri in Maharashtra and Masar in Gujarat enable us to exceed customer expectations. We have our own PVC resin manufacturing facility in Ratnagiri, set up in technical collaboration with Uhde GmbH, with Hoechst technology, which provides a consistent supply of superior quality resin to our pipe manufacturing plants. Our open sea cryogenic jetty, the first of its kind in the Indian private sector, has been the hallmark of our PVC complex. We are the first Indian PVC Pipes manufacturer to have been awarded the ISO 9001:2008 Certification.

Finolex Industries has a national presence with over 22,000 dealers, sub-dealers, and retailers in our network. With a skilled workforce of over 1,375 employees, Finolex operates on its core values of quality, trust and integrity helping us form lasting bonds with our varied stakeholders.

About Mukul Madhav Foundation:

Mukul Madhav Foundation (MMF), was established in 1999 as a Public Charitable Trust. Today it is well recognized for its charitable activities in Healthcare, Social Welfare, and Education. Since 2014, MMF is now the official CSR arm of Finolex Industries, a collaboration that has strengthened and increased the spectrum of MMF's work into areas of Water Conservation, Social Welfare, and Sanitation.

MMF is registered as a charitable trust under the Bombay Charitable Act 1950. All donations are exempt from Income Tax under 80G Certificate. In April 2012 MMF obtained the Foreign Contribution Regulation Act Certificate (FCRA) which enables it to receive funds from abroad.