Share of Finolex Industries rose 14 per cent to hit a fresh 52-week high of Rs 198.90 on BSE today after the company reported a healthy set of numbers for the quarter ended March 2021.
The company reported a whooping 409.40 per cent jump in consolidated net profit to Rs 298.84 crore for the quarter ended March 2021. Profit in the year-ago period stood at Rs 58.6 crore. Revenue from operations grew 62.5 per cent to Rs 1,249.34 crore in the March-ended quarter against Rs 768.66 crore a year ago.
The stock ended 5.01 per cent higher at Rs 182.35 against the previous close of Rs 173.65. Market cap of the firm rose to Rs 11,314.40 crore on BSE.
It has gained 75 per cent in the last one year and risen 41 per cent since the beginning of this year. The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.
For FY21, the consolidated net profit jumped 121.79 per cent to Rs 737.79 crore while revenue from operations grew 16.02 per cent to Rs 3,462.82 crore.
Speaking on the performance, Mr. Prakash P. Chhabria, Chairman, Finolex Industries Ltd. said, "We are confident that our business model which is as 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," he added.
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," Chhabria said.
The Board of Directors has 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.
Finolex Industries Limited, headquartered in Pune, is India's largest and only integrated manufacturer of PVC Pipes & Fittings.
The company said that it has its PVC resin manufacturing facility in Ratnagiri, set up in technical collaboration with Uhde GmbH, with Hoechst technology, which provides a consistent supply of resin to the pipe manufacturing plants.