Finolex Industries Ltd. — Interim / Quarterly Report 2021

Feb 1, 2021

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

FIL/SEC/SEs/2020-21/ 170 1st February, 2021

The Manager - Listing Department	Listing Department The Manager -
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: Outcome of the Board Meeting: Un-audited Financial Results for the quarter and nine months ended on 31•t December, 2020

Ref: Regulation 30 & 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir /Madam,

In terms of the subject referred regulations, kindly be noted that the Board of Directors of the Company at its meeting held on 1st February, 2021, has, inter-alia, approved and taken on record the Un-audited Financial Results (both Standalone & Consolidated) for the quarter and nine months ended 31st December, 2020 along with related segment-wise financial results, copy is enclosed.

A copy of the 'Limited Review Report' of the Statutory Auditors, on the said Unaudited Financial Results is also enclosed.

The aforesaid board meeting commenced at 9 .15 p.m. (IST) and concluded at 10.45 p.m. (IST).

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

Thanking you,

Yours truly,

For Finolex Industries Limited

^hB. Kulkarni Company Secretary & Compliance Officer ACS No.: 18549

Encl.: As above

Fax +91 20 27474444

Tel +91 20 27408200

Registered Office I Urse Plant

Finolex Industries Limited Gat No. 399, Village Urse, Tal.-Maval, Dist. Pune 410 506, Maharashtra, India CIN L40108PN1981 PLC024153

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

FINOLEX INDUSTRIES LIMITED Reg istered Office: Gat No. 399, Village Urse, Ta luka Mava i, Dist. Pune - 410 506. CIN: l40108PN1981PLC024153

Statement of Unaudited Standalone Fina ncia l Results for the quarter and Nine months ended December 31, 2020

Rs . in Crores except Earning per sha re

	Particulars	Standalone
		Ouarter Ended			Nine months ended		Year Ended
		31.12.2020	30.09.2020	31.12.20 19	31.12.2020	31.12.2019	31.03.2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaud ited	Audited
	Income
I	Revenue from Operations	1,066.88	585.78	699.40	2,214.73	2.219.87	2.985.98
II	Other income	18.16	32.46	6.20	58.94	28.3 6	6.99
III	Total Income (I+Ill	1 085.04	618.24	705.60	2 273.67	2 248.23	2_qqz _q7
IV	Expenses
	Cost of materials and components consumed	672.56	340.50	578.06	1,145.51	1.492.80	2,037. 71
	Purchase of stock-in -trade	2.90	1.97	2.99	6.68	10.08	13.84
	Changes in inventories of finished goods, stock-in-trade and work- in-progress	(89.12)	(24 .34)	(155 .81 )	134.85	(6 1.15)	(108.88)
	Employee benefits expenses	36.76	36.10	34.67	107.47	104. 79	145.55
	Finance costs	1.79	0.77	1.77	5.84	2.88	11.91
	Depreciation and amortisation expense	19.85	19.34	18.76	58.02	54.93	73.81
	Other expenses	97.12	86.78	100.53	240.55	327.8'	425.84
	Total expenses (IV)	741.86	461.12	580.97	1 698.92	1 932.18	2 599.78
v	Profit before tax (III-IV)	343.18	157.12	124 .63	574.75	316.05	393 .lQ
VI	Tax Expense
	Current tax	87.00	37.91	38.30	144.00	79.38	103 .56
	Deferred tax	0 .32	ro.511	!6.991	0 .06	(31.821	(34.571
	Total Tax Expense	87.32	37.40	31.31	144.06	47.56	53_q9
VII	Profit for the period (V-VI)	255.86	119. 72	93.32	430.69	268.4q	324.20
A	VIII Other Comprehensive Income (OCI) Items that will not be reclassified to profit or loss Re-measurement of defined benefit plans Gain/(Loss)	1.20	3.26	(0.21)	3.61	(2.92)	(3.38)
	Income tax effect	'0.30'	rn.82'	0.05	'0.91 \	0.73	0.85
A(i)	Re-measurement of defined benefit plans net off income tax	0.90	2.44	(0.16)	2 .70	(2.19)	(2. 53 )
	Equity instruments through OC! Gain/(Loss)	152.73	(30.59 )	(30.491	329.01	(234.23 )	(621. 151
	Income tax effect A(ii) Equity instruments through OCI net off income tax	- 152.73	(3 0.59 )	(30.49)	0.06 329.07	0.06 (234.17)	0.08 (621.07)
	Total other Comprehensive Income [A(i)+A{ii)]	153.63	r2s.151	130.65 '	331.77	<236.'~'	1621.601
IX	Total Comprehensive Income for the period (VII+VIII)	409.49	91.57	62.67	762.46	32.13	(299.40)
x	Earnings per equity share having nominal value per share of Rs. 10 (Not annualised for quarter/ nine months ended)
	Basic Diluted	20.62 20.62	9.65 9.65	7.52 7.52	34.71 34.71	21.64 21.64	26.13 26.13

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

Fax

Tel

+91 20 27408200 +91 20 27474444

Notes -

1 Se!lmentwise Revenue, Results and Caoital emoloved

		Standalone
	Particulars	Quarter Ended			Nine months ended		Year Ended
		31.12.2020	30.09.2020	31.12.2019	31.12.2020	31.12.2019	31.03.2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	SEGMENT REVENUE
	Revenue from each segment:
$\overline{a}$	PVC	691.97	368.06	408.03	1,354.31	1,245.57	1,679.16
b	PVC Pipes & Fittings	725.80	500.83	553.51	1,733.61	1,921.76	2,553.95
	Total	1,417.77	868.89	961.54	3,087.92	3,167.33	4,233.11
	Less: Inter segment Revenue	350.89	283.11	262.14	873.19	947.46	1,247.13
	Revenue from Operations	1,066.88	585.78	699.40	2,214.73	2,219.87	2,985.98
$\overline{2}$	SEGMENT RESULTS
	Profit / (Loss) before tax and interest from each segment:
a	PVC	245.64	99.10	81.82	367.95	168.26	199.79
ь	PVC Pipes & Fittings	91.35	39.30	43.56	182.09	139.76	202.68
	Total	336.99	138,40	125.38	550.04	308.02	402.47
	Less:
1	Finance costs	1.79	0.77	1.77	5.84	2.88	11.91
$\mathbf{H}$	Other un-allocable expenditure Add:	4.29	5.24	5.69	13.76	18.72	26.70
III	Other un-allocable income	12.27	24.73	6.71	44.31	29.63	29.33
IV	Share of profit/(loss) of an associate
	Total Profit / (Loss) Before Tax	343.18	157.12	124.63	574.75	316.05	393.19
з	Capital employed: Segment Assets (-) Segment Liabilities
a	PVC	845.70	586.54	809.24	845.70	809.24	959.33
b	PVC Pipes & Fittings	1,060.75	991.28	1,053.18	1,060.75	1,053.18
	Unallocated	1,954.84	1,486.01	1,459.09	1,954.84		1,022.21
c.		3,861.29	3,063.83	3,321.51	3,861.29	1,459,09 3,321.51	833.77 2.815.31
	Total Segment Assets
a	PVC PVC Pipes & Fittings	305.36 58.38	83.59 52.04	174.30 67.00	305.36 58.38	174.30 67.00	178.05 77.42
ь	Unallocated	805.27	645.40	669.25	805.27	669.25	630.03
c				910.55
	Total Segment Liabilities PVC	1,169.01 540.34	781.03 502.95	634.94	1,169.01 540.34	910.55 634.94	885.50 781.28
a ь	PVC Pipes & Fittings	1,002.37	939.24	986.18	1,002.37	986.18	944.79
$\mathbf{C}$	Unallocated	1,149.57	840.61	789.84	1,149.57	789.84	203.74
	Capital Employed	2,692.28	2,282.80	2,410.96	2,692.28	2,410.96	1,929.81

Registered Office I Urse Plant

Finolex Industries Limited Gal No. 399, Village Urse, Tal.-Maval, Dist. Pune 410 506, Maharashtra, India CIN L40108PN1981PLC024153

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

FINOLEX INDUSTRIES LIMITED Registered Office: Ga t No. 399, Village Urse, Taluka Mavai, Dist. Pune - 410 506. CIN: L40108PN1981PLC02415 3

Statement of Unaudit ed Consolidated Fina ncia l Re sults for the q uarter and N ine m onths ended December 3 1, 2 020

Rs. in Crores except Earning per share

	Particulars			Consolidated
		I uarter Ended			Nine months ended	Year Ended
		31.12.2020	30.09.2020	31.12.2019	31.12.2020	31.12.2019	31.03.2020
		Unaudited	Unaudited	Unaudited	Unaud ited	Unaudited	Audited
	Income
I	Revenue from Operations	1,066.88	585.78	699.40	2 ,214.73	2,219.87	2,985 .98
II	Other income	18.16	31.53	6.20	58.01	27.44	6.07
III	Tota l Income (I + II)	1 085.04	617.31	705.60	2 272.74	2 247.31	2 992 .05
IV	Expenses
	Cost of materials and components consumed	672.56	340.50	578.06	1,145.51	1,492.80	2,037.71
	Purchase of stock-in -trade	2 .90	1.97	2.99	6.68	10.08	13.84
	Changes in inventories of finished goods, stock-in-trade and work-in-	(89.12)	(24.34)	( 155.81)	134.85	(61.15)	(108.88)
	progress
	Employee benefits expenses	36.76	36.10	34.67	107.47	104 .79	145.55
	Finance costs	1.79	0 .77	1.77	5.84	2.88	11.91
	Depreciation and amortisation expense	19.85	19.34	18.76	58.02	54.93	73.81
	Other expenses	97.12	86.78	100.53	240.55	327 .86	425.85
	Total expenses (I V)	741 .86	461.12	580.97	1 698.92	1 932.19	2 599. 79
v	Profit befor e tax (III-IV)	343.18	156.19	124.63	573.82	315.12	392.26
	Share of p rofit/(loss) of an associate	5 .78	4 .50	8.04	13.17	13.96	25.56
VI	Profit before tax	348.96	160.69	132.67	586.99	329 .08	4 17.82
VII	Tax Expense
	Current tax	88.81	39.53	40.22	148.53	83.83	111.42
	Short/ (excess) provision of earlier year(s)	-		(0.21)	-	(0.21)	(0.21)
	Deferred tax	0 .75	11.671	15.87'	'0.49'	128 .53)	126.04)
	Total Tax Expense	89.56	37.86	34.14	148.04	55.09	85.17
	VIII Profit for the peri od (VI-VII)	259.40	122.83	98.53	438.95	273 .99	332.65
IX	Other Comprehensive Income (OCI)
A	Items that will not be reclassified to profit or loss
	Re-measurement of defined benefit plans Gain/( Loss)	1.20	3.26	(0.21)	3.61	(2.92)	(3.38)
	Income tax effect	'0.30\	10.82\	0.05	10.91\	0.73	0.85
A(i)	Re-measurement of defined benefit plans net off income tax	0 .90	2 .44	(0.16)	2 .70	(2.19)	(2 .53)
		152.73	(30.59)	(30.49)	329.01	(234.23)	(62 1.15)
	Eq uity instruments through OCI Gain/(Loss) Income tax effect	-	-	'0.00'	0 .06	0.06	0 .08
	A(ii) Equity instruments through OCI net off income tax	152.73	(30. 59)	(30.49)	329.07	(234.17)	(621.07)
	A( iii) Share of other comprehensive income (net of tax) of associate accounted for using t h e equity method				-	-	0 .22
	Total Other Comprehensive Income [A(i)+A(ii) + A(iii)]	153.63	128. 16'	f30.65\	331.77	1236.36)	1623.381
					770.72		(290.73)
x	Total Comprehensive Income for the period (VIIl +IX)	413 .03	94.67	67 .88		37.63
XI	Earnings per equity share having nom inal value per shar e of Rs.10 (Not annua lised for quarter/ n ine months ended)
	Basic	20.90	9.90	7 .94	35.37	22.08	26.81
	Diluted	20.90	9 .90	7 .94	35.37	22.08	26.81

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

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Notes -

1 Segmentwise Revenue, Results and Capital employed Rs. in Crores

Sr No	Particulars	Consolidated
		C ua rter Ended			Nine months ended	Year Ended
		31.12.2020	30 .09.2020	31.12.2019	31.12.2020	31.12.2019	31.03 .2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	SEGMENT REVENUE
	Revenue from each segment:
a	PVC	691.97	368 .06	408.03	1,354.31	1,245.57	1,679 .16
b	PVC Pipes & Fittings	725.80	500 .83	553.51	1 733.61	1 921. 76	2 553.95
	Total	1.417.77	868.89	961.54	3,087.92	3,167.33	4,233.11
	Less: Inter seament Revenue	350.89	283 .11	262.14	873.19	947.46	1 247.13
	Revenue from Onerations	1 066.88	585.78	699.40	2 214.73	2 219.87	2 985.98
2 a	SEGMENT RESULTS Profit/ (Loss) before tax and interest from each segment: PVC	245.64	99.10	81.82	367.95	168.26	199.79
b	PVC Pioes & Fittinas	91.35	39.30	43 .56	182.09	139. 76	202 .68
	Total	336.99	138.40	125.38	S50.04	308.02	402.47
I II III IV	Less: Finance costs Other un-allocable expenditure Add: Other un-allocable income Share of profit/{loss) of an associate	1.79 4.29 12.27 5 .78	0.77 5.24 23 .80 4 .50	1.77 5.69 6.71 8.04	5.84 13.76 43.38 13.17	2.88 18.72 28.69 13.96	11.91 26.70 28.40 25.56
	Total Profit I (Loss\ Before Tax	348.96	160.69	132.67	586.99	329.08	41 7 .82
3 a b c	Capital employed : Segment Assets (-) Segment Liabilities PVC PVC Pipes & Fittings Unallocated	845.70 1,060.75 2 039.72	586.54 991.28 1 566.56	809.24 1,053.18 1 526.51	845.70 1,060.75 2 039.72	809.24 1,053.18 1 526.51	959.33 1,022.21 909.80
	Total Seament Assets	3 946.17	3 144.38	3 388.93	3 946.17	3 388.93	2 891.34
a	PVC	305.36	83 .59	174.30	305.36	174 .30	178.05
b	PVC Pipes & Fittings	58.38	52 .04	67.00	58.38	67.00	77.42
c	Unallocated	825.71	665 .05	683.70	825.71	683.70	649.89
	Total Seament Liabilities	1 189.45	800.68	925.00	1 189.45	925.00	905.36
a	PVC	540.34	502.95	634 .94	540.34	634.94	781.28
b	PVC Pipes & Fittings	1,002.37	939.24	986 .18	1,002.37	986. 18	944. 79
c	Unallocated	1 214.01	901.51	842.81	1 214.01	842.81	259.91
	Canital Emnloved	2 756.72	2 343.70	2 463.93	2 756.72	2 463.93	1 985.98

Notes contd .....

• 2 The above resu lts have been reviewed by the audit commi ttee and approved by the Board at their respective meeti ngs held on February 01, 2021. The Limited rev iew of the financial results for the quarter and nine months ended December 31, 2020, pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 as amended has been carried out by the statutory auditors.
• 3 The Company's factories which had to suspend operations temporarily from the March 23, 2020, due to Government's directives relating to the Novel Corona Virus causing Covid 19, have resumed operations in phased manner at different plants from April 29, 2020 onwards in accordance with the guidelines and norms prescribed by the Government authorities.

The Company has evaluated the impact of Covid 19 on the operations of the Company, inventories, investments, property, plant & equipment, current borrowings and trade payables. The management has considered the possible effects, if any, on the carrying amounts of these assets and liabilities up to the date of approval of these results. Based on the information from the internal and external sources; the management estimates to recover the carrying amount of these assets and currently does not anticipate any material impairment.

• 4 The company has consolidated its associate, Finolex Plasson Industries Private Limited in which it holds 46.35% using equity method as per Ind AS 28 'Investment in Associates and Joint Ventures'. The Company has not consolidated an immaterial associate, Pawas Port Limited, in which the company holds 49.99% equity shares (Rs. 0.05 crores) and has not started operations.
• 5 The above statement has been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) prescribed under section 133 of the Companies Act, 2013 and other recogn ised accounting practices and policies to the extent applicable.
• 6 Previous periods' figures have been re-grouped wherever necessary, to conform to the current period's classification.

Pune February 01 , 2021

By order of the Board of Directors For Finolex Industries Limited

Anil Whabi Director DIN 00142052

P G BHAGWAT LLP Chartered Accountants LLPIN: AAT - 9949

HEAD OFFICE

Suite 102, 'Orchard', Dr. Pai Marg, Saner, Pune - 411045. Tel. : 020 - 272907711177211773 Email : pgb@pgbhagwatca.com Web : www.pgbhagwatca.com

Independent Auditor's Review Report on Unaudited Standalone Quarterly and Year to date financial results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to The Board of Directors Finolex Industries Limited Gat No. 399, Village Urse, Taluka-Maval, Urse - 410506.

We have reviewed the accompanying statement of standalone unaudited Ind AS financial results of Finolex Industries Limited (the "Company") for the Quarter ended December 31, 2020 and year to date from April 1, 2020 to December 31, 2020 (the "Statement") being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and an analytical procedure applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

For P G Bhagwat LLP

Chartered Accountants ICAI Firm Registration Number-101118W /W100682

Nachiket Deo Partner Membership Number: 117695 UDIN: ~11 17G~.J"'AAAAl>rN 78*°

Pune Date: February 01, 2021 P G BHAGWAT LLP Chartered Accountants LLPIN: AAT - 9949

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Suite 102, 'Orchard', Dr. Pai Marg, Saner, Pune - 411045. Tel.: 020 - 272907711177211773 Email : pgb@pgbhagwatca.com Web : www.pgbhagwatca.com

Q. * * NE r.n g ⁵

Independent Auditor's Review Report On consolidated unaudited quarterly and year to date financial results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Review report to The Board of Directors Finolex Industries Limited Gat 399, Urse, Mavai, Pune- 410506, Maharashtra, India

• 1. We have reviewed the accompanying Statement of Consolidated Unaudited Ind AS financial results of Finolex Industries Limited ("the Company") and share of the net profit after tax and the total comprehensive income of its associate for the Quarter ended December 31, 2020 and year to date from April 1, 2020 to December 31, 2020 ("the Statement") being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, .as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Sta,ndard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This standard requires th<jlt we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and an analytical procedure applied to financial data and thp.s provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. We also performed procedures in accordance with the Circular No. CIR/ CFD/CMDl/44/2019 dated March 29, 2019 issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligati@ns and Disclosure Requirements) Regulations, 2015, as ~-- amended, to the extent applicable. ~~p.GW~J-«-<l
• 1. The Statement includes the results of the following entities: Finolex Plasson Indush·ies Private Limited (Associate of the Company consolidated on equity method as per Ind AS 28 "Investment in Associates and Joint Ventures").The management of the Company has not consolidated an irrunaterial Associate which has not started operations in which it holds 49.99% equity shares amounting to Rs.0.05 crores.
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For P G Bhagwat LLP Chartered Accountants Registration Number: 101118W /W100682

* N achiket Deo

Place: Pune Date: February 01, 2021