Finolex Industries Ltd. — Interim / Quarterly Report 2021

Jun 25, 2021

Tel Toll Free Fax Email Web +91 2114 237251 I 237253 1800 200 3466 +91 2114 237252 investors@finolexind.com finolei<pipes.com

FIL/ SEC/ SEs/2021-22/017

25th June, 2021

The Manager - Listing Department	Listing Department The Manager -
National Stock Exchange of India	BSE Limited
Limited	Registered Office: Floor 25
, Exchange Plaza 5	P.J .Towers
Bandra-Kurla Complex	Dalal Street
Bandra (East),	Mumbai 400 00 1
Mumbai 400051
Scrip Code: FINPIPE	Scrip Code: 500940 /FINOLEXIND

. . . . . Sub: Presentation on Audited Fm~ncial Results for the quarter and financial year ended on 31st March, 20 1

Ref: Regulation 30 of the I (Listing Obligations and Disclosure Requirements) Regulations, 2 15

Dear Sir /Madam,

In terms of the subject referred re lation, a presentation on Audited Financial Results (both Standalone & Consolid ed) along with the volume data and earning release of the Company for the qua.rte and financial year ended 31st March, 2021 , is enclosed.

You are requested to kindly take the a ove on your records.

Thanking you,

Yours truly,

For x Industries Limited

Ashutosh Kulkarni Company Secretary & Compliance Offi er ACS No .: 18549

Encl. : As above

Corporate Office Finolex Industries Limited D-1I10, M.l.D.C.

Tel Fax +91 20 27 08200 +91 20 27 74444

Investor Presentation Q4 FY21

	Q4 FY21	FY21	Segment Revenue -	Q4 FY21
Highest ever quarterly & annual revenue	 Total revenue registered a y-o-y growth of 62.5% to Rs. 1,249 Crs	 Total revenue registered a y-o-y growth of 16.0% to Rs. 3,463 Crs	902	Rs Crs 920
Significant Improvement in operational performance	 EBITBA grew by 305.3% to Rs 424 Crs  PAT grew by 433.7% from Rs 56 Crs to Rs 297 Crs	 EBITDA grew by 122.0% to Rs 1,062 Crs  PAT grew by 124.6% from Rs 324 Crs to 728 Crs	PVC Resin Segment Volume	P&F - Q4 FY21
Good volume despite lock downs	 PVC Pipes & Fittings volume registered a y-o-y decline of 3.6% to 60,232 MT.  PVC Resin volume registered a y-o-y growth of 25.3% to 75,281 MT	 PVC Pipes and Fittings volume registered a y-o-y decline of 16.8% to 2,12,060 MT.  PVC Resin volume registered a y-o-y decline of 1.3% to 2,36,086 MT		MT 75,281
Continues to be Net Zero Debt Company	 Liquid Investments (Net of Borrowings) at Rs 825 Crs on 31st March 2021	 Net Cash generated from operating activity Rs 941 Crs	60,232 PVC P&F	PVC Resin

Resin Pipes and Fittings

696.40 Crs

248.9% y-o-y

2,273.31 Crs 35.5% y-o-y 2,635.30 Crs 3.2% y-o-y Revenue Volume EBIT Revenue Volume EBIT Resin Pipes and Fittings

Q4 FY20 Q3 FY21 Q4 FY 21

P&F EBIT (Rs Cr)

PAT (Rs Cr)

Net Investments (Rs Cr)

The company had net debt as on 31 st March 2020

Summarised Income Statement

Rs. In Crores	Q4FY21	Q4FY20	YOY Change	FY21	FY20	YOY Change
Total Income from operations	1,249.34	768.66	62.5%	3,462.82	2,984.51	16.0%
Other Income	13.54	0.98		72.48	30.84
EBITDA	423.59	104.51	305.3%	1,061.79	478.28	122.0%
EBITDA margin (%)	33.9%	13.6%		30.7%	16.0%
Depreciation	19.70	18.88		77.72	73.81
EBIT	403.89	85.63	371.7%	984.07	404.47	143.3%
EBIT %	32.3%	11.1%		28.4%	13.6%
Finance costs	1.84	8.49		7.27	11.28
Profit before tax	402.05	77.14	421.2%	976.80	393.19	148.4%
PBT %	32.2%	10.0%		28.2%	13.2%
Tax	104.72	21.43		248.78	68.99
PAT	297.33	55.71	433.7%	728.02	324.20	124.6%
PAT %	23.8%	7.2%		21.0%	10.9%

Balance Sheet - Key Indicators

Rs. In Crores 31

Rs. In Crores	st 31 March 2021	st 31 March 2020
Equity and liabilities
Share capital	124.10	124.10
Reserves and surplus	2,948.78	1,805.71
Long term borrowings	-	-
Short term borrowings (including loans repayable in one year)	203.85	282.67
Assets
Fixed assets (Net block)	1,002.35	1,016.89
Capital WIP	8.15	7.28
Non current investments	1,085.26	455.53
Current investments	506.94	124.53
Debt/Equity	6.6%	14.6%

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, Works and Warehouses

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 to 13 Nursing Girl Students & 50 BSC Agriculture students

• 165 students at Nidhal Primary School, 25 benches at Mahatma Gandhi School, Teachers salary at ROBA Trust Dehradun

• 1 Crore individual impacted in our endeavour in eradicating hunger and poverty over the years.

• Grocery support to 20 institutes in Pune, Ratnagiri.
• Diaper support to 8 senior citizen homes, Pune

• Through Annamrita Foundation, we have given over 13,500 meals and fed 9000 Cows Over the years MMF has been instrumental in training Medical Professionals, supporting Hospital infrastructure and other activities

• 75 Cataract surgeries, 75 insulin distribution, 3 Diabetic Camps & 39 Blood test sponsored in the last quarter.

• Financial support to 79 patients, in total 783 patients supported.
• Inauguration of Human Milk Bank Command Hospital in Pune.

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

• Installed a pipeline network to the hostel and plantation area at ITI College Aundh, Pune

• Supported 10 para-medical students at Aradhana Skills, Pune who recently graduated in the 4th Convocation ceremony

• Infrastructure Elevator support for Anand Ghar Old age Home, Kolambe in Ratnagiri, Maharashtra

• 13 villages supported with home based healthcare for women in collaboration with SEARCH, Gadchiroli, Maharashtra

• 17 tribal women farmers supported with 170 honey bee boxes.

• Under Mission Celebral Palsy 606 Physiotherapy sessions, 436 speech sessions. Support to 1012 kids

• Partnership with British Asian Trust, Actionaid,& Prince's trust International having impact in various key issues impacting mankind.

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

• 417 Oxygen concentrators, 32 Ventilators
• 5,500 Warrior Kits,

• Support extended to 10 states

• 100 PPE Kits & Safety gears

• 250 Masks

• 300 Paracetamol strips

• 250 Gloves

• 2 Thermo scanners
• 2 Oximeters

Print, Magazine Ads, & Other Branding Activities

Indian Plumbing Association Magazine/Epaper Ads Festive Ads

Electronic Coverage, Outdoor Advertising, Event Promotion

Events Association Outdoor Advertising/Events Digital Events

Finolex Industries Ltd.

Volume Data

Sr. No.	Particulars	Q4FY18	Q1FY19	Q2FY19	Q3FY19	Q4FY19	Q1FY20	Q2FY20	Q3FY20	Q4FY20	Q1FY21	Q2FY21	Q3FY21	Q4FY21
1	Production in MT
a	PVC Resin	82,672	52,757	45,839	76,686	84,221	51,785	41,347	83,370	70,891	13,785	43,338	84,016	83,896
b	PVC pipes & fittings	71,774	73,276	54,714	63,525	67,814	88,297	62,786	53,355	59,250	44,697	54,406	51,702	61,901
2	Sales in MT
a	PVC Resin-External	17,126	13,048	8,781	22,211	22,640	11,618	6,997	19,908	17,076	7,853	9,665	31,475	26,825
	PVC Resin-Inhouse	54,997	55,406	34,680	44,627	53,909	66,894	34,425	39,246	43,025	37,582	37,965	36,266	48,456
	Total PVC	72,123	68,454	43,461	66,838	76,549	78,512	41,422	59,154	60,100	45,435	47,630	67,741	75,281
b	PVC Pipes	66,753	73,065	40,648	54,309	75,043	86,349	43,255	47,328	57,361	49,856	38,503	49,426	54,189
c	PVC Fittings	5,005	4,571	4,625	4,869	5,728	5,306	4,769	5,487	5,104	3,054	5,115	5,873	6,042
	Total Pipes and Fittings	71,758	77,636	45,272	59,179	80,771	91,655	48,024	52,815	62,464	52,911	43,618	55,299	60,232

Finolex Industries ends FY21 on a historic high; reports Rs. 1,061.79 Cr EBITDA on a full year revenue of Rs. 3,462.82 Cr

Pune, 25 June 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 audited financial results for the fourth quarter ended March 31, 2021.

Key Financial Highlights: (INR- Cr)

Rs Cr	Q4 FY21	Q4 FY20	% change	FY21	FY20	% change
Net Revenue	1,249.34	768.66	62.5%	3,462.82	2,984.51	16.0%
EBITDA	423.59	104.51	305.3%	1,061.79	478.28	122.0%
PAT	297.33	55.71	433.7%	728.02	324.20	124.6%

Q4 FY21 Highlights:

• Total income from operations was Rs 1,249.34 Cr for Q4FY21 up 62.5% against Rs 768.66 Cr in Q4FY20.
• EBITDA stood at Rs 423.59 Cr for Q4FY21 up 305.3% against Rs 104.51Cr for Q4FY20.
• Profit after tax was at Rs 297.33 Cr for Q4FY21 up 433.7% against Rs 55.71Cr for Q4FY20.

FY21 Highlights:

• Total income from operations was Rs. 3,462.82 for FY21, up 16% against Rs 2,984.51 Cr in FY20.
• EBITDA stood at Rs 1,061.79 Cr for FY21- up 122.0% against Rs 478.28 Cr for FY20.
• Profit after tax was at Rs 728.02 Cr for FY21 up 124.6% against Rs 324.20 Cr for FY20.
• During the year, the Company generated Rs. 940.98 Cr of cash from operations

Speaking on the performance, Mr. Prakash P. Chhabria, Chairman, Finolex Industries Ltd. said, "We are confident that our business model which is as strong and robust as the products and services we offer, will help us augment our growth. The company is confident of growing at an accelerated rate which is aligned with our overarching strategy to enhance value for all stakeholders. For our shareholders, we continue with our policy of a high dividend payout ratio. We stand with our employees – our biggest assets and are happy to state that we not only announced increments and promotions during the year, but also paid a special incentive for all employees as the Company completes 40 years of successful operations. During this difficult time, Finolex Industries, in conjunction with our CSR Partner, Mukul Madhav Foundation, continues to support communities, in which we operate, with on-ground activities for Covid relief funded under its CSR initiatives."

Finolex has always endeavored to create value for its shareholders. Earlier this year in January 2021, Finolex Industries had announced a share split which was received positively by the markets reflecting confidence in the long-term growth plans of the company. This has increased the liquidity of our shares and allows more investments through the open market, with the widening of the distribution of company stocks.

In line with our past history of healthy dividend payouts every year, the Board of Directors have recommended a final dividend of Rs. 2 per equity share and an additional one-time special dividend of Rs. 2 per equity share for this financial year. This is subject to approval from the Shareholders of the Company in ensuing Annual General Meeting.

Particulars (Rs Cr)	Q4FY21	Q4FY20	Inc / Dec (%)
Total Income from operations	1,249.34	768.66	62.5%
Other Income	13.54	0.98
EBITDA	423.59	104.51	305.3%
EBITDA margin (%)	33.9%	13.6%
Depreciation	19.70	18.88
EBIT	403.89	85.63	371.7%
EBIT %	32.3%	11.1%
Finance costs	1.84	8.49
Profit before tax	402.05	77.14	421.2%
PBT %	32.2%	10.0%
Tax	104.72	21.43
PAT	297.33	55.71	433.7%
PAT %	23.8%	7.2%

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

Particulars (Rs Cr)	FY21	FY20	Inc / Dec (%)
Total Income from operations	3,462.82	2,984.51	16.0%
Other Income	72.48	30.84
EBITDA	1,061.79	478.28	122.0%
EBITDA margin (%)	30.7%	16.0%
Depreciation	77.72	73.81
EBIT	984.07	404.47	143.3%
EBIT %	28.4%	13.6%
Finance costs	7.27	11.28
Profit before tax	976.80	393.19	148.4%
PBT %	28.2%	13.2%
Tax	248.78	68.99
PAT	728.02	324.20	124.6%
PAT %	21.0%	10.9%

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 1,381 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.